Monitoring and Reporting
When trading partners begin VMI, they start by agreeing upon objectives for:
Inventory turns
Fill rates (in-stock percentages)
Transaction costs
The system monitors actual activity with measurements against those objectives. The system must report the same information to both the supplier and the customer so that the process is highly transparent. Information should always be available to both parties on demand. Ideally, the VMI system should also provide exception alerts to both parties when measurements get outside an acceptable range or when a problem with the data appears.