There are many ways that selecting the right Vendor Managed Inventory (VMI) partner can simplify your business and help you to start saving time, money, and improve your bottom line.
Let’s break down what VMI is all about.
What is VMI?
VMI is a supply chain management system in which a supplier tracks and manages a customer’s inventory on site at the customer’s warehouse. The supplier tracks the quantity on hand of SKU’s, initiates replenishment purchase orders, does the physical replenishment, and forecasts future demand.
How Does VMI Simplify Your Business?
A VMI program can consolidate the number of vendors you have and take the burden of managing inventory out of your hands. This allows you more time to focus on other aspects of your business. You’ll spend fewer hours reviewing inventory levels, analyzing demand, placing purchase orders, and more. You’ll also dedicate fewer Warehouse resources to physical replenishment and reduce the number of checks your payables department will have to write. In the end, it’s all about keeping production up and running ensuring fulfillment of your customers needs and requirements, while being a good steward of your company’s time and money.
How Does VMI Improve Your Bottom Line?
First, time is money, and as we’ve already pointed out, leveraging a VMI program saves you time across your entire organization, from the Purchasing department to Payables, and into the Warehouse and Operations. At every level a VMI program saves your company time which translates to a financial savings that’s applied directly to your bottom line.This streamlining of the supply chain system also creates great inventory efficiency and assurance that you’ll have in stock the parts you and your customers need, when you need them. Keeping your manufacturing lines up and running and product out the door. This equates to an enhanced level of customer service which makes customers happy. We all know that it’s easier to keep the customers you have, than to find new ones. The bottom line to your bottom line is that happy customers end up being repeat customers.
The RIGHT VMI Partner Makes All the Difference.
Of course, these benefits are only theoretical until you find the RIGHT resource to implement your VMI program. Your partner needs to have experience working with a company like yours and whose resources fit your needs. One who listens and develops a program around YOUR GOALS. And you need a partner who wants to create a lasting relationship that’s powered by trust, rooted in service, and who strives to create long term stability and success for everyone.