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    Inventory Management | Non-Consigned Vendor Managed Inventory

    Posted by Rob Dell'Elmo on Apr 2, 2019 11:00:00 AM

    There are two types of VMI program – Non-Consigned and Consigned.

    Both Non-Consigned and Consigned VMI programs offer customers a similar list of benefits, which you can read more about HERE.

    In a Consigned VMI program, the inventory is put in place, but the customer doesn’t pay for it until it’s consumed. You can learn more about a Consigned program HERE.* 

    * It should be noted that the benefits of Consigned expressed here are relative to Consigned VMI, not simply Consigned inventory. One can have Consigned inventory absent a VMI program.

    The more traditional of the two programs is Non-Consigned VMI. In a Non-Consigned program, the customer pays for the inventory as it’s brought in, and whenever replenishment is necessary.


    The net effect of a non-consigned VMI program is that it can CREATE TIME for you to focus on other important parts of your business while also SAVING YOU MONEY.

    How does it do that?

    First, if your non-consigned VMI provider offers Summary Billing, you’ll have fewer invoices to pay and checks to write than if you had been placing the same orders without a VMI program in place.

    Additionally, with your VMI partner keeping a continuous eye on your inventory, analyzing usage, and forecasting future needs, you’ll carry less overall inventory (i.e. lower carrying costs), while still maintaining enough to meet demand, whether that’s on your assembly line or in your customer’s shop. All the while, with those details handled, you’ll have been freed to take on larger, more challenging, and more productive projects.

    The non-consigned VMI program not only takes off your hands the burden of daily inventory management tasks, but also gives you an expert partner to leverage, which can offer a great deal of peace of mind.

    If you believe your company might benefit from VMI we invite you to click HERE to learn more. 

    Or fill out this form and our team will reach out to you to see if you qualify for our VMI services.

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    Topics: Vendor Managed Inventory, inventory management