SKF makes Vendor Managed Inventory available to its global network of distributors
2014 May 15, 09:00 CEST
Higher service levels, faster delivery and higher quality of inventory management
Gothenburg, Sweden, 15 May 2014: SKF is offering a Vendor Managed Inventory (VMI) system from Datalliance to its distributors around the world. The system is designed to automatically maintain distributors’ inventory levels.
The rollout of the VMI system is part of SKF’s global Distributor Interconnectivity Programme (DIP), which sets out to achieve high service levels to end-customers, increase speed and quality in business communication through IT integration, and improve business forecasting accuracy.
Vartan Vartanian, President, SKF Industrial Market Regional Sales and Service said, “We aim to increase service levels to customers. VMI delivers significant benefits to all parties involved. For SKF, it means having better visibility to inventory levels so we can plan manufacturing and sales more effectively to meet future demand. For our end-customers, it means constantly being able to find the right SKF products in the right place, at the right time. And for our distributors, it means increased sales and improved customer loyalty.”
The VMI system automatically generates purchase orders and replenishes inventory whenever stocks reach minimum levels. The system recalculates data on a daily basis and proposes purchase orders to replenish inventory to the highest service levels and reduce distributors’ inventory management costs.
SKF has worked with Datalliance for a number of years, choosing to partner with the company because of its experience and track record as a VMI platform provider. To date SKF has been successful in implementing VMI with major distributors in its Nordic region and in the USA, reaching service levels to end-customers of 98% in each of these markets.
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SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 15,000 distributor locations worldwide. Annual sales in 2013 were SEK 63,597 million and the number of employees was 48,401. www.skf.com
® SKF is a registered trademark of the SKF Group.