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Vendor Managed Inventory (VMI) is a service provided by LANXESS to ensure a constant and appropriate supply of products for their customers. LANXESS monitors usage data for a specific material at agreed intervals with the aid of a VMI system and automatically replenishes the customer's stocks.
Sensors or a barcode scanner measure the level of product in a tank or in packed goods and transmit the relevant data to the online VMI system. As soon as a certain level is reached, an automatic (or manual) order is generated. It then goes to the LANXESS supplier's ERP system (e.g. SAP R/3) where it triggers the appropriate requisition process.