Vendor-Managed Inventory (VMI)

Sharing Inventory Risk for Mutual Gain

The Watts Water Vendor Managed Inventory (VMI) service is a computer software-enabled collaboration between Watts Water and US wholesale customers. This partnership inverts and radically changes the traditional ordering process. Rather than having wholesalers send hard copy purchase orders, your computer-based business system electronically transmits daily demand information. We use that data to calculate and generate replenishment orders for you based on inventory position and demand. In this model, Watts Water takes responsibility for managing the demand and replenishment of our products for you.

The Benefits of VMI

VMI eliminates inventory management problems of the past while reducing overhead by transferring your inventory management, order entry, and forecasting to Watts Water. Consider these benefits:

  • Improves inventory turns up to 13 times/year – by carrying and investing in less inventory, you gain access to greater working capital
  • Provides better service levels – improve fill rates and decrease stock-outs and inventory levels
  • Increases sales – provides better service to end user by having correct items in stock when the customer needs them
  • Reduces admin burden – improves efficiency for handling additional sales volume
  • Requires less distribution space – increases product coverage and material handling efficiencies
  • Greatly reduces data entry errors –virtually eliminates human errors through computer-to-computer communications and generates POs on predefined basis

How VMI Works

The Watts Water VMI process begins with mutually agreed objectives regarding your inventory levels, fill rates, and transaction costs.

The VMI is then configured to align our mutual business objectives and streamline supply chain operations. As demand data is received, it is automatically analyzed and orders are placed consistent with predetermined mutually agreed business objectives. The VMI process assures product availability and replenishment quantities on a schedule that keeps your stock levels at optimum efficiency. VMI automates and even eliminates many costly and time-consuming manual functions while improving service and cutting transaction costs.

Partnering with Watts Water

Customers must meet basic Information technology capability and business volume requirements to qualify to participate. To learn more about becoming a VMI partner with Watts Water, please complete and submit the electronic form below. You will then be contacted by a representative that will discuss the VMI value equation and requirements to determine if vendor managed inventory is a good fit for your business.

Your Information