Which suppliers are suitable for VMI?

VMI works best with suppliers of high-volume, predictable commodities — where consumption is relatively stable, the supplier has reliable production and logistics, and the relationship is long-standing enough to trust mutual stock visibility. Salt, sugar, commodity fats, and standard packaging are common VMI candidates. VMI is not suitable for seasonal or highly variable materials, or for suppliers with variable quality or delivery reliability.

Does the supplier see all of the manufacturer's stock data or only their own materials?

Suppliers see only the stock data for their own materials in the VMI portal — their material codes, the current stock quantity at the manufacturer's site, the daily consumption, and the days-of-coverage. They do not see the manufacturer's broader stock position, pricing, or other supplier data. Access is material-specific and supplier-specific.

What happens if the supplier does not trigger a replenishment in time and stock falls below the minimum?

Where a VMI material falls below the minimum level without the supplier having triggered a delivery, HublerX alerts the procurement team immediately — the VMI has failed and a manual PO or emergency sourcing action is required. The alert includes the days of coverage remaining and the contact details for the VMI supplier. The failure is recorded in the VMI performance report for the quarterly review.

Can VMI be operated on a consignment basis where the manufacturer only pays for material consumed?

Yes. HublerX supports consignment VMI — where the supplier retains ownership of the material until it is consumed in production, and the manufacturer pays on consumption rather than on GRN. The consignment stock is tracked separately in the WMS. Payment is triggered by the production goods issue, not the goods receipt. Consignment VMI requires a specific frame agreement and ERP configuration.

Vendor Managed Inventory

HublerX gives selected suppliers real-time visibility of the manufacturer's stock position and production consumption for their materials — enabling the supplier to replenish proactively against agreed min/max levels, eliminating the need for the manufacturer to raise POs for routine replenishment.