Q & A with Connor Arney, Austin Hardware and Supply National Sales Manager for VMI 

CA: Vendor-managed inventory is an arrangement between the customer and supplier in which the vendor takes responsibility for managing and replenishing stock levels of agreed-upon parts and products at the customer's customer's location.

• AH: What are the benefits of implementing a VMI system for businesses and suppliers? 

CA: "Benefits of VMI include; Reduced stockouts, improved inventory accuracy, lower inventory carrying costs, and better supply chain visibility. 

The Differences Between VMI and CMI

Vendor Managed Inventory (VMI) and Customer Managed Inventory (CMI) are inventory management programs that differ in responsibility for managing inventory. 

In a VMI program, the vendor (supplier) is responsible for managing the customer's inventory levels. The vendor collects customer usage data from sales forecasts, inventory levels, or other key metrics to determine when and how much product to deliver. In a VMI program, the vendor takes on the responsibility, and subsequent risk, of maintaining appropriate stock levels to balance inventory with costs for optimal cash flow. The customer benefits from a more streamlined supply chain and reduced inventory holding costs while having to invest less time and personnel resources into inventory management.  

Specific benefits of a VMI program include but are not limited to the following: 

• - A completely hands-off approach to inventory management 

• - Vending technology can be used to track usage and reduce cost 
• - An overall reduction of in-house inventory means less cash is tied up in inventory 
• - Vendor consolidation means a reduction in transactions and invoices 
• - Point-of-use inventory and in-house tool crib management streamline your production processes, saving additional time and money. 

Finding the Right Solutions for Your Supply Chain with Austin Hardware®

The job of securing your business data and ensuring your supply chain runs smoothly is critical. In light of recent world events, that job also has never been more challenging. 

As a source of solutions for your business, we can't be too thorough or too careful, which is why everything we do at Austin Hardware®, from the training of our employees to the safeguards on our e-commerce website, are designed to achieve those goals.

We utilize state-of-the-art inventory management software to provide accurate, current inventory levels, ensuring you have safety stock to avoid crucial line-down situations.  

At Austin, we seek to provide the best solutions for our customers by delivering value-added solutions for various aspects of your business. We are more than just a hardware company. We are a solutions provider.

If you are ready to find the best solutions for your business, read our top 10 ways to help your business run smoothly.

Using Data to Build Your Business

Using data to measure your business's success helps you see a clear picture of where your business stands. Numbers don't lie -- you can tell how your business is doing and set goals based on past and present metrics. These Key Performance Indicators (KPIs) help your business stay on track to goals, quotas and let you know where you stand. Austin Hardware® covers this more in-depth here.

Aren't you ready to stop focusing on the small things like purchase orders, supply chain headaches, too many vendors, etc.? It's time to start focusing on what really matters – what new product improvements are needed to drive sales, how vendors can align with you to exceed your corporate or department goals, what manufacturing processes need revisiting. It's time to start building business relationships, setting long-term goals, growing your business, and preparing for future growth.

Austin Hardware's team of experts can help take your business to the next level. If staying on track for your future goals is your concern, keep reading to see how Austin Hardware's use of data analytics and solutions can help your business stay on track this year.

Creating efficiencies within your company, no matter what size, is not only about your bottom line. It is about more. It frees up your time to focus on what matters: building relationships and creating partnerships. Efficiency allows you to streamline paperwork, supply chains, tasks, orders, and many other aspects of your business. 

There are many ways to streamline and create more efficient workflows. Whether you're dealing with a specific pain point or wish to take your company's growth to the next level, Austin Hardware's Vendor Managed Inventory (VMI) program is ready to help your business take the next step. We will work alongside your team to create a streamlined, efficient, and well-oiled machine.  

If you’re in the construction or woodworking business, you’re using nails every day. Homeowners often find themselves looking for just the right nail for their DIY projects. Even the core customers of Austin Hardware®, which are in the transportation and metal fabrication businesses, industries in which nails are not a predominant fastener, find the occasional need for nails for different projects such as constructing shipping containers for their products. 

For many companies, a Vendor Managed Inventory program is a better way to handle replenishment.

The natural question for you to ask now is … why? What are the benefits of having a supplier manage MY inventory?  In a word … MONEY.

Now that’s obviously an oversimplification. But when you break it down and look at all the different parts of the replenishment cycle a VMI program can impact, it becomes easy to see the benefits.  

Let’s take a more detailed look.

There are a number of options, and plenty of decisions to make for companies considering a Vendor Managed Inventory (VMI) program. Depending on a company’s goals, budget, and available resources they’ll have to decide on the type of VMI program, to what extent the VMI provider’s personnel will be used, how products in your program are going to be replenished and accessed, and more.

We’ll look at a few of these options in this post.

There are essentially two types of VMI programs

• Non-Consignment
• Consignment.

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