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The
Fred Meyer group supports Vendor Managed Replenishment for
General Merchandise vendors only.
Vendor
Managed Replenishment (VMI) is a continuous replenishment
program between the Retailer and the Supplier allowing the
supplier to manage and replenish merchandise at the store or
warehouse level. Fred Meyer provides the supplier on a daily
basis with specific item information such as the UPC number,
warehouse quantity on-hand, on-order, sold, and out of stock.
This information is sent to the vendor daily via the 852 Product
Activity Data transaction set. The supplier uses this
information to determine the replenishment quantities for the
Fred Meyer distribution center and sends this information back
to Fred Meyer as a EDI 855 purchase order acknowledgement.
Vendor
Managed Replenishment is a "demand as-is needed"
supply chain. Fred
Meyer benefits from an improved in-stock position with increased
turns of product. Reducing lead times and increasing the service level does
this. Consumers
benefit from having the right products at the lowest possible
cost available for purchase.
The Supplier benefits from knowledge of the demand for
their products enabling the Supplier to plan resources better,
manage promotional stock, minimize errors in the accounting
process, and anticipate demand changes.
Vendor
Managed Replenishment is dependent on having a well-thought
business arrangement, which meets the goals and expectations of
the customer. In
this relationship, our buyers relinquish control over an
item/supplier category in favor of an improved EDI and Logistics
processes, as well as special pricing considerations.
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