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Vendor Managed Inventory

Real Time Benefits derived by introducing VMI
Prepared by: Mr Umit Nedim General Manager TT Logistics 2008

(c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved


Benefits Vendor Managed Inventory     Transfer Inventory. Proven Inventory/Warehousing systems (Web based). Improve working Capital up to 35%. – Visibility of stock holdings – Visibility into supply chain (ASN) – Quarantine (theoretical) stores – No locally loaded software management (c) 2008 TT Logistics (Australasia) pty ltd. including. Visibility of the total supply chain. All Rights Reserved 2 . and responsibility to Suppliers.

Vendor Managed Inventory  It is a Web-based Supply Chain Management system used by Customer.  TT-Logix is integrated with the VMI system to provide a total solution for Customer’s VMI business model. All Rights Reserved 3 . TTL and Suppliers. Thailand and China).  TTL current customer uses this system in 3 countries (Australia. and 80% being overseas suppliers.  TT-Logix is the Warehouse Management System used to manage the Logistics process by TTL. (c) 2008 TT Logistics (Australasia) pty ltd. There are over 1000 suppliers using the system.

2 mil AUD 6.000 $1. All Rights Reserved 4 .000 VMI BLIND FACTORY $11.0 mil $9.000 AUD 9.000 $7.Actual Customer benefit for one of the factories Customer Inventory Value ($'000) $13.000 Nov-06 Nov-07 Nov-08 Jul-07 Jan-07 Jun-07 Jan-08 Jun-08 Jul-08 Feb-07 Feb-08 Jan-09 Sep-06 Dec-06 Aug-07 Sep-07 Dec-07 Aug-08 Sep-08 Dec-08 Feb-09 Apr-07 Mar-07 Mar-08 Apr-08 May-07 May-08 Mar-09 Oct-06 Oct-07 Oct-08 -$1.000 $3.000 (c) 2008 TT Logistics (Australasia) pty ltd.000 $5.

Operational Flow Forecast & recommendation Via Internet E-KANBAN Delivery Cycle 1:16:2 Overseas Suppliers Customer Australia TTL VMI W/H Australia Toyota Tsusho O/Seas E-KANBAN Delivery Cycle 1:16:2 TTL VMI W/H Thailand Forecast & recommendation Via Internet Customer Thailand (c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved 5 .

VMI Business Flow Customer VMI Warehouse TT overseas Supplier Forecast Usage Recommendation Receive Goods Arrange Shipment Put Away Goods Ship Goods Deliver Goods Arrange Pickup Production Prepare Shipment Create ASN ASN Receipt Confirmation Electronic Order Pick Goods KANBAN Cards Deliver Goods Receive Goods Electronic Delivery Docket Billing Report Receive ASN Confirmation Electronic Receipt Confirmation Make Payment Issue Invoice (c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved 6 .

System Modules • • • • • • • • • • • Forecast Usage Recommendations ASN Management (ASN = Advance Shipping Notice) Billing Reports Aging Reports Inventory Status Inventory Movement Inventory Planning Item Master Supplier Information Email Alerts (c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved 7 .

email is sent to Supplier with the Part No and Qt Received  New Demand Alert When there is a change in Forecast Usage / Recommendation. All Rights Reserved 8 .Email Alerts / Notification The system generates the following email alerts and notification to Suppliers:  Minimum / Maximum Stock Alert Email is sent when stock falls below minimum or maximum qty  ASN Receipt Confirmation Upon receipt of goods. email is sent to alert Suppliers to adjust their Production  New Billing Reports Notification Notifies the Supplier when a New Billing Report is ready (c) 2008 TT Logistics (Australasia) pty ltd.

TT-Logix Introduction TT-Logix is a Warehouse Management System developed based on TTL’s proven Logistics process  Easy to use. Taiwan. Australia. All Rights Reserved 9 . China. Indonesia. Malaysia)  Multi-Language (Currently available in English and Chinese) (c) 2008 TT Logistics (Australasia) pty ltd. Thailand. User Friendly – Windows based System with Step by Step guide for each process Achieve accuracy by the use of Barcode Scanning Use of 2 Dimension Barcode. QR Code (Developed by Denso) to encode more data on the barcode      Picking is based on FIFO Continuous review to improve the system Proven solution used in 7 countries (Singapore.