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VMI conclusions for fashion brands and multibrand retailers redefined ★ Steven Witteveen Sr. Partner @WAIR.ai >> boosting stockturn on shop floors, while reducing waste and free up cash, through Predictive AI. For fashion retailers and fashion and lifestyle brands with controlled shop floors: #fashionVMI 11 november 2024 The blog post "VMI conclusions for fashion brands and retailers - November 2023" discusses the financial implications of adopting Vendor Managed Inventory (VMI) in the fashion industry. The blog outlines four scenarios comparing traditional wholesale models to VMI, using two initial mark-up factors: 2.5 and 2.0. Key Findings: Earnings Focus: Shifting from percentage-based assessments to actual euros earned offers a clearer financial picture. Retailer Advantages: Even with a lower mark-up factor of 2.0, retailers fare better under VMI compared to traditional models with a 2.5 mark-up. This suggests that VMI allows for a lower initial margin while achieving higher final earnings for both brands and retailers. Brand Benefits: VMI scenarios not only show better overall margins, but other advantages as well: Enhanced customer loyalty and stronger retailer relationships. Improved control over merchandise flow. True partnerships with retailers, leading to increased overall margins. Greater responsibility across the supply chain, promoting sustainability. Initial conclusion: The analysis shows that VMI strengthens the overall value chain in the fashion industry substantially, offering financial and operational benefits to both brands and retailers. For detailed charts and data, refer to the original blog post.