In the traditional supply chain environment, a manufacturer
intermittently submits purchase orders to its supplier
without further explanation of the material requirements.
The supplier reacts to the incoming order, and hopefully is
prepared for whatever is demanded. Both buyer and supplier
work in isolation, in their own interests, building up buffers
or scaling back production quantities in case the other fails
to meet expectations, speculating on each other’s motives and
capabilities, and confirming their worst fears when the unexpected
inevitably occurs. This conventional approach to trade
is costly and frustrating.
VMI transforms the tra