There are two ways VMI software can be used and which direction it takes is determined by the VMI agreement between the distributor and end user.
The most common VMI approach has the distributor's sales representative go to the end user's location and count what's there. Depending on the agreement, the sales representative will either enter the number of each product needed or the number of each product on the shelf — the latter is used with the goal of keeping par levels, or the minimum and maximum number the customer wants on the shelf of each product. So, if the par level for mops is at 13 and the sales rep counts eight, he or she knows to order five mops.
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