Too many manufacturers only discover stockouts once their distributor clients are already facing empty shelves. But how can stockouts be avoided?
This lack of responsiveness weakens commercial relationships, increases costs, and damages brand reputation. Yet the causes are well known: inaccurate forecasts, limited visibility on flows, and poor coordination among stakeholders. In this context, VMI (Vendor Managed Inventory) and CMI (Co-Managed Inventory), paired with a dedicated solution like OCS vmi, allow manufacturers to anticipate rather than react.
Common Causes of Stockouts – And How to Avoid Them
Even the most organized manufacturers can experience stockouts. Most often, they result from a domino effect:
- Sales forecasts are disconnected from actual demand.
- Demand spikes go unanticipated (promotions, seasonality).
- The distributor alerts too late—sometimes only once the critical threshold is reached.
- The manufacturer has only partial visibility of downstream inventory.
The result? Logistics tensions, emergency shipments, contractual penalties, or worse—a loss of trust from the distributor.
The Principle of VMI: Regaining Control Through Collaboration
VMI is based on a simple idea: the supplier manages the inventory levels at the distributor’s site.
This doesn’t mean shipping blindly—it means leveraging shared data flows and setting clear, contractual objectives:
- expected service level,
- inventory coverage targets,
- replenishment lead times, etc.
This approach flips the traditional model: from a reactive supply chain to a proactive one. And when several manufacturers supply the same distributor, VMI even enables flow pooling, streamlining deliveries and reducing costs.
How Does OCS vmi Prevent Stockouts?
OCS vmi automates the management of these collaborative flows. Thanks to a shared view of inventory and consumption history, the system continuously calculates replenishment needs:
- It takes into account stock thresholds, delivery constraints, upcoming promotions, and seasonal factors.
- It automatically generates replenishment proposals.
- It issues alerts in case of potential stockouts or imbalances.
Manufacturers can manage multiple distributors and monitor activity centrally, while adapting business rules to each client. This ensures product availability in the right place, at the right time.
Shared Benefits Across the Entire Supply Chain
With OCS vmi, manufacturers:
- reduce the risk of stockouts and overstock,
- optimize order preparation and transportation,
- streamline interactions with their customers’ procurement teams,
- secure operations during periods of stress (material shortages, peak demand, etc.).
But most importantly, the distributor also benefits:
- better on-shelf product availability,
- fewer disputes or errors,
- more reliability during promotions,
- smoother logistics coordination.
With the right tools, VMI and CMI enable a win-win collaboration, bringing value to every link in the chain.
If you’re wondering how to prevent stockouts, it’s not a matter of luck—it’s about proactive, collaborative supply chain management. With OCS vmi, manufacturers regain control of their flows while strengthening relationships with their distributor clients. A smoother, smarter logistics chain.