Vendor Managed Inventory
What can be better than paying for inventory only when it is shipped or consumed? With ProLog’s systems and third party structure this desire can be turned into a reality through a comprehensive vendor managed inventory program.
Vendor managed inventories can fail for a variety of reasons:
- Vendors are required to stock their products at the customers site, losing a sense of control.
- Vendors are not supplied real-time and accurate data related to their inventory, losing visibility on their investment.
- Clients are required to assume management responsibility for their vendors’ inventory, which they are not often prepared to do.
- Clients are ill-prepared to track consumption and provide management reports to their vendor partners for proper invoicing of consumed items.
- The overall process lacks an impartial third party for effectively resolving operational disagreements or discrepancies.
ProLog, as a third party to a vendor managed inventory program, is uniquely positioned to overcome each of these obstacles:
- Products are stocked at a ProLog facility, ensuring the care, custody and control of a vendor’s product
- ProLog’s system tracks inventory at the supplier level, making that data available over the web. Each vendor is provided password protected access such that they can only see their inventory and not that of other participants.
- ProLog liberates clients from the control function, reducing their administration and management liability.
- ProLog’s systems track individual consumption by item and vendor, and in turn generating management reports that can be utilized by all parties as invoicing or payment mechanisms.
- ProLog serves as the coordinating third party to ensure the program is executed effectively and fairly.