Top 10 Reasons Not to Try VMI(英文版)(doc 8页)
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Based on their VMI success with key customers (distributors) over this time period, Rockwell has recently embarked on an effort to increase the percentage of their domestic business handled by VMI from 20% to 70%. Realizing this substantial increase in VMI throughput will require the support and cooperation from Rockwell’s customers. In anticipation of their questions, Janice wrote this response to proactively address customer concerns and illustrate the benefits of VMI.
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Reason #4: If we let a computer program determine our inventory, I estimate that our inventory dollars will increase a minimum of $200,000.00. We can’t afford to tie up our money like that. What about the extra warehouse space? What about the extra items lying around with price tags anywhere from $2,000.00 to $8,000.00 each? The big question is: Do we need to keep five of this item on the shelf, or would one or none be enough? Will VMI order five of this item?
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If we had stuck with this as our theme for the last 100 years where would we be today? Change is a constant. If a customer wants to remain competitive into the next century you must anticipate -- look for ways to ‘fix it’ before it breaks. VMI provides excellent bottom line results in a variety of industries.
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