Fixing the Disconnect in Modern Supply Chains
Inventory mismanagement is one of the most expensive inefficiencies in global supply chains. Too much stock drains capital; too little creates missed opportunities and delays. That’s where Vendor-Managed Inventory (VMI) comes in, and at IFS Group, we’ve built Vendorvillage, a proprietary VMI platform that sets a new standard for supply chain transparency and efficiency.
What Is Vendor-Managed Inventory (VMI)?
VMI is a logistics model where the supplier manages the inventory levels of their customer. Instead of the customer placing orders based on projections, the supplier monitors stock usage in real time and ensures shelves or warehouses are replenished just in time.
It’s a win-win model: customers reduce admin and avoid stockouts, and suppliers gain more control over production and delivery schedules.
The Vendorvillage Advantage
Vendorvillage isn’t just a smart software platform, it’s a fully accredited inventory solution designed for compliance, security, and serious supply chain optimisation.
Unlike standard VMI setups, Vendorvillage is officially approved by both HMRC (Her Majesty’s Revenue and Customs) and the Civil Aviation Authority (CAA). This level of accreditation elevates it well above generic inventory systems, especially for businesses handling bonded goods or high-value imports.
Why HMRC Approval Matters
Having HMRC approval means Vendorvillage operates as a bonded VMI facility. This allows clients to delay payment of import duties and VAT until goods are released from the bonded warehouse, offering a major cash flow advantage for importers and distributors.
For many businesses, this deferred tax model provides critical breathing room, allowing you to hold stock locally without immediately incurring fiscal liability.
Even if your business doesn’t currently require CAA services, having a CAA-approved facility speaks to IFS Group’s rigorous operational standards, security protocols, and trusted status with regulatory bodies.
How Vendorvillage Transforms Supply Chain Management
1. Reduced Inventory Holding Costs
By eliminating buffer stock, businesses avoid tying up capital in unsold goods. Vendorvillage enables just-in-time (JIT) restocking, so products arrive as they’re needed, not months in advance.
2. Enhanced Supplier-Customer Collaboration
Vendorvillage creates shared visibility between stakeholders, promoting better trust, communication, and strategic alignment.
Industries That Benefit Most from VMI
- Manufacturing: Continuous parts supply avoids production stoppages.
- Healthcare: Precise tracking of critical stock levels like PPE and pharmaceuticals.
- Automotive: Just-in-time delivery of parts and components.
Let Your Inventory Manage Itself
In today’s fast-moving economy, reactivity isn’t enough, businesses need real-time, data-driven supply chain systems. With Vendorvillage, IFS Group offers a proven VMI solution that simplifies inventory management, improves cash flow, and boosts service levels.
Ready to explore a smarter way to manage your stock?
FAQ
Q1: What is Vendor-Managed Inventory (VMI)?
VMI is a system where suppliers manage stock levels and replenishment based on customer usage data.
Q2: How is Vendorvillage different from other VMI platforms?
Vendorvillage is a proprietary platform developed by IFS Group. It offers a single user-friendly interface, and has won a Queen’s Award.
Q3: Who owns the stock in a VMI model?
Typically, the supplier retains ownership until the goods are used or invoiced; however, models can be adapted based on the contract terms.
Q4: Is Vendorvillage scalable?
Yes. It’s built to handle anything from a single warehouse to dozens of multi-site retail or industrial locations.
Q5: How can I get started with Vendorvillage?
Contact our team at IFS Group to request a demo and see how Vendorvillage can integrate into your supply chain.