Vendor Managed Inventory (VMI) Software Solutions 

The WISE Vendor Managed Inventory (VMI), also known as Vendor Managed Replenishment (VMR), is the ideal fit for manufacturers, 3PLs, or 4PLs to optimize the inventory levels held by a distributor, sellers, or retailers. Gain complete insight into inventory levels shared 360 degrees connecting the databases of your suppliers, distributors, and all your supply-chain partners to create a collaborative well-informed demand forecasting and inventory planning process. The Royal 4 Systems WISE Vendor Vendor-managed inventory (VMI) is the smart choice for retailer-supplier partnerships to reduce total inventory costs in supply chain management (SCM).

Powered By: Royal 4 Systems’, Wise WMS “Supply Chain Software Technology Since 1984”

Claxton Cold Storage

“Claxton moves millions of frozen chickens on a regular basis and the WISE 3PL billing module allows us to calculate the VAS invoice to 5 decimal points which makes the billing much more accurate. We also needed a system that could work for the dry goods areas of our business.”

Fastline Pty Ltd

“The WISE 3PL WMS system solved many problems for us. On a recent audited count for a large retailer, out of over 20,000 items we were off by only 38 pieces which is an accuracy rate of 99.8%. We have reduced staff and gained accuracy while shipping more goods than before.”


“Service Cold Storage selected Royal 4’s WMS solution because of some key and important reasons. First, we required a system that would be able to perform in both freezers and dry goods areas simultaneously. I’m a huge Royal 4 advocate given my experience and implementation of many WMS Systems.”

Features of the WISE – Vendor Managed Inventory (VMI) Solutions include


  • Helps retailer-supplier partnerships to reduce total inventory costs and improve efficiencies in supply chain management (SCM).
  • Improves Buyer Supplier Cooperation, Efficiency, and transparency
  • Improve Order Distribution
  • Consolidate Billing
  • Improve Reporting Capabilities
  • Improves Demand Forecasting
  • Inventory-Demand Balancing
    Helps Prevent the Stocking of Undesired Inventories
  • Helps prevent the Bullwhip effect / Forester effect

So why do you need Vendor Managed Inventory Software, aka VMI software? Also, why is it that Royal 4 customers have no fear of Bullwhips?

First, here is an example of how you can save money with Vendor Managed Inventory (VMI). Retailer Big Tire shares its inventory data with DC Vendor/Supplier. DC Vendor/Supplier is the decision-maker who determines the order size for themself and Retailer Big Tire. With this partnership, DC Vendor/Supplier is responsible for Retailer Big Tire’s ordering cost; however, the Retailer Big Tire has to pay for their own holding cost. This policy can prevent stocking undesired inventory levels and thus lead to overall cost savings and mutually beneficial circumstances while reducing the “Bullwhip effect.”

The problem identified as the “Bullwhip Effect” or the “Forester Effect” is notable when demand forecasts yield supply chain inefficiencies. This is an issue of increasing fluctuations in inventory in response to product demand by consumers with increasing variability as one moves further up the supply chain. The phenomenon is best described by Jay Forrester as “the observed propensity for material orders to be more variable than demand signals and for this variability to increase the further upstream a company is in a supply chain.” Stanford University researchers also indicated that “a fluctuation in point-of-sale demand of five percent will be interpreted by supply chain participants as a change in demand of up to forty percent. Much like cracking a whip, a small flick of the wrist a shift in point-of-sale demand can cause a large motion at the end of the whip manufacturers response”. The Royal 4 Systems WISE – Vendor Managed Inventory (VMI) Solutions solves issues like these and is backed with four decades of experience tackling situations like them.

Change in Demand

Inventory levels and demand can change with new hardware versions coming from upstream and marketing promotions downstream. Therefore, it is more important than ever to have the tools you need to manage inventory levels and share access to this information with all your supply chain partners.

VMI Flowchart
Verifiable Results VMI

Verifiable Results

We have many satisfied customers and use examples in a variety of situations, including retail chains having Distributions Centers resupply their stores using the WISE Vendor Managed Inventory System (Tire Warehouse Distributors, Supermarket Chains, and many more.)  Contact us today to get the latest information, product details, and a game plan to fit your needs from the experts with over 38 years in the business, Royal 4 Systems.

Also, see our 3PL and 4PL Solutions with Vendor Managed Inventory VMI functionality integrated.

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