Vendor Management Inventory (VMI)

The VMI model involves close co-operation between the buyer and the supply chain vendor, STHC. Leveraging on our logistics expertise, we assume full responsibility of your end-to-end supply chain services based on the information provided to us. This includes maintenance of an agreed inventory of the material which is usually at your consumption location. STHC’s VMI model manages your logistics solutions from procurement to distribution, thus relieving the pressures caused by supply chain processes and allowing you to focus on your primary aim of patient care.

The broad range of services under the STHC’s VMI model includes the following:

Material Planning – STHC plans the required stocks and quantity to purchase from suppliers and builds up the needed buffer stocks in the warehouse, therefore optimizing the inventory holding to balance between out-of-stock situations and financing costs.

Purchasing – STHC procures the required stocks from suppliers under contracts established either by you or STHC. This thus relieves the Material Management Departments’ workloads to focus on strategic planning and purchases.

Warehousing – Suppliers deliver to STHC’s preferred warehouse which strategically removes the MMD’s receipt activities. As the stock ownership belongs to STHC, cycle counts and stock take responsibilities are performed by us. This also implies the transfer the responsibility of stock discrepancies to us. If you have any change in preference, the existing stock will simply have to be drawn down prior to the change.

Transport – With close cooperation and scheduled agreements, STHC provides transport services from the warehouses and can conduct top ups direct to central stores, ward shelves, clinic and external sites.

Order management – Our order management system provides customization according to your needs, allowing you to order drugs and repackage drugs. We have a wide array of options to choose from, such as online portals, interfacing through SAP, mobile apps, among others.

STHC has proudly performed VMI services to MINDEF and MOH since 1983 and 2003 respectively. In the face of ever-shifting national landscapes, our principle objectives have never wavered. We stay true to our promise to create a strong partnership between us and our buyers based on a shared risk system, thereby achieving benefits such as costs savings through demand aggregation and waste reduction through stock rotation among customers.