Parts Before They Break: How Vendor-Managed Inventory (VMI) Saves Time and Money

Holding two years of spare parts ties up capital; holding none invites costly downtime. Vendor-Managed Inventory strikes the balance by letting your supplier own the stock until you need it.


How VMI Works

  1. Shared Forecast – Your ERP posts consumption signals to SMOR’s portal.

  2. Dynamic Replenishment – Algorithms recalculate min/max levels daily.

  3. On-Site Consignment – Parts sit in a secure cage at your plant; ownership transfers only at withdrawal.


Measurable Gains

KPI Before VMI After VMI
Carrying Cost ฿4.2 M/yr ฿1.9 M/yr
Stock-outs 7 events/yr 0 events/yr
Technician Search Time 22 min 6 min

Beyond Spares: Data-Driven Planning

SMOR’s analytics engine flags chronic part usage, feeding back into your reliability program. If a cylinder seal fails every 9 weeks, maybe the root cause isn’t stocking—but incorrect air pressure.


Implementation in 4 Weeks

  1. Audit & SKU Rationalization

  2. Barcode/RFID Tagging

  3. Portal Integration (SAP, Oracle, or Odoo)

  4. Go-Live with Quarterly SLA Review