the benefits of cloud-based VMI

Benefits of Cloud-based VMI

Cloud based software has changed our life in many ways. From storing information on our phones, to sharing files to downloading music, ‘the cloud’ has made our lives easier and it is the same with using using a cloud based Vendor Managed Inventory (VMI) program. Whether you’re working from a single location or multiple locations, cloud VMI can benefit your company in many ways.

  • Improved collaboration

Effective S&OP processes require cross functional collaboration. Both internal and external players will want to access the same data for planning purposes and to obtain insights. ERP systems come short in this area. Since the data is housed in separate systems, you and your overseas suppliers might not be able to collaborate on and plan based on the same information. This might result in data silos, forecast inaccuracies, and overstock/out-of-stock incidences, possibly resulting in profit loses and dissatisfied customers.

(Learn more about the Security Benefits of Cloud-Based VMI.)

With cloud VMI, on the other hand, everyone is usually on the same page, making demand planning instantaneously possible from anywhere in the world on a single, integrated platform. There will be real-time data for everyone to work with, ensuring that all players – suppliers, retailers, distributors, manufacturers, marketing, sales, finance, and demand planning departments – can work together in pursuit of shared goals.

  • Quick deployment and easy to scale

Cloud based S&OP is also easier to deploy. You don’t need to prepare for full scale implementation the way you would do with ERP, where you first need to obtain additional IT resources, hardware, and infrastructure. This means you’ll move faster, save on costs, and improve your ROI.

Down the road, you’ll realize additional benefits owing to the Cloud’s ability to scale seamlessly as the business grows. With cloud, you don’t need to reconfigure dozens of systems across the supply chain to adapt to the speed of your business.

  • Streamline with other cloud solutions

Finally, if like other businesses you have already migrated most of your Enterprise activities to cloud, it would only make sense to pick a cloud-based VMI program. This will allow your employees to access everything they need in the same browser interface, making work a lot easier.


Don’t let land based systems hold you back. Choose a cloud based VMI system today and start reaping the benefits of improved collaboration, greater flexibility, and faster scaling.

Download our retail supply chain collaboration white paper to learn the seven most important criteria in selecting a new supply chain platform. 

Download Retail Supply Chain Collaboration White Paper

We are experts in synchronising your business to actual demand -- by always making your product available to the consumer, at the right place, time and quantity. We are Neogrid, a company focused on automatic supply chain management.