For FMCG brands, nothing damages retailer trust faster than missed deliveries or excess write-offs. Vendor Replenishment Planning (VRP) is one of the most effective ways to improve DIFOT (Delivered In Full, On Time) while reducing costly waste.

DIFOT – The Retailer Benchmark

Retailers like Coles and Woolworths measure suppliers by their ability to deliver stock exactly when needed. A consistently high DIFOT score means:

Stronger supplier-retailer partnerships
More opportunity for promotional activity
Reduced penalties and fewer compliance issues

How a VRP and ISP can Improve DIFOT

VRP’s and ISP’s provided real-time replenishment insights, allowing suppliers to:

Respond quickly to changes in demand
Prevent out-of-stock situations before they occur
Avoid over-ordering by maintaining lean inventory

When used effectively, a replenishment planner keeps shelf availability high and protects sales revenue.

Cutting Write-Offs With Smarter Planning

Excess stock often leads to heavy write-offs, particularly in categories with short shelf lives. By aligning replenishment orders with real demand signals, VRP helps brands:

Minimise overproduction
Reduce excess warehouse storage costs
Improve working capital utilisation

A Strategic Advantage for FMCG Suppliers

Adopting the VRP/ISP model isn’t just about compliance - it’s about profitability. When suppliers embed replenishment into their overall supply chain strategy, they unlock cost savings and reduce business risk.

For many brands, this means bringing in a Vendor Replenishment Planner (VRP), Integrated Supply Planner (ISP) or leveraging Fractional Supply Chain Management expertise to drive results.

Final Thought

VRP is more than a retailer requirement - it’s a competitive advantage. Suppliers who embrace VRP see higher DIFOT scores, stronger relationships, and fewer write-offs which is a winning formula for growth.

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