Pooling to speed up retailers flows

For 15 years, VMI (Vendor Managed Inventory) has been a way of reducing stocks of consumer products (except for fresh products) to less than10 days of coverage.

Today’s challenges are far more ambitious: How to speed up flows in logistics circuits to improve sales? How to reduce supply chain costs to improve margins? Fill rate plays the predominant role in manufacturers’ thinking, while retailers are carefully defining new programmes to reduce, or even fully do away with, warehouse-based stock.
The difficult choice between the risk of a product being out-of-stock and reducing the financial burden is a huge dilemma.