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Asset Management

Vendor-managed inventory (VMI) is a of business models in which the buyer of a product (business) provides contract  to a supplier of that product and the supplier takes full responsibility for maintaining an agreed  inventory of the material, usually at the buyer's consumption.
A third-party logistics provider can also be involved to make sure that the buyer has the required level of inventory by adjusting the demand and supply gaps.

PHE WMO haS developed some Contracts  to provide the material on VMI basis (Stainless Fittings, Production Chemicals, Fyrewash Chemicals, and Solar Routine Parts).

VMI material includes, but is not limited to, material, services, logistics, handling, spare parts and consumables materials. 
The VMI location and storage is at PHE WMO Warehouse. The SUPPLIER may invoice the PHE WMO once the material is purchased by PHE WMO based on issued GI Slip. Unconsumed VMI material remains the property of the SUPPLIER at the end of the contract.

The call out delivery of the VMI material is based on the end user’s operational requirement and the call out method will be documented and agreed upon by the SUPPLIER and the PHE WMO at the commencement of the contract. SUPPLIER is responsible for meeting the material requirements of the PHE WMO program.


SUPPLIER shall keep all of the materials required by PHE WMO available at PHE WMO’s warehouse at the maximum level (based on the min max list provided by PHE WMO) after the bid is awarded. During the period of the CONTRACT, SUPPLIER shall keep all materials required for minimum at min level stock at PHE WMO warehouse.

SUPPLIER shall provide Personnel (without additional charge) as per PHE WMO request to analyze and initiate Stock Replenishment Order based on historical usage, responsible to update inventory report to PHE WMO Representative, and do the cycle count activity.

SUPPLIER’s personnel shall be responsible and accountable to arrange SUPPLIER’s materials in PHE WMO’s bin rack and provide cross reference for the SUPPLIER’s material against PHE WMO’s Material Number. PHE WMO will provide space with bin rack dedicated for SUPPLIER’s materials.

The quantity of materials as set forth is an estimate only and shall not be deemed or imply any commitment by PHE WMO. The actual quantity of materials required by PHE WMO will be based on actual operational requirements, which will be advised by PHE WMO from time to time during the term of this Contract.
At the end of the Contract, SUPPLIER shall provide PHE WMO with a report of Material utilization including the total utilization value which must be equal to the total material value supplied to PHE WMO minus the total material value returned to SUPPLIER.

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