Vendor Managed Inventory Program
A good vendor managed inventory program takes the responsibility out of the buyer’s hands. Instead of having to place replenishment orders yourself, the supplier will do it for you. As a result, your company will deal with fewer administrative burdens, saving quite a bit of money.
Benefits of VMI Systems
Improved inventory management is the primary benefit, helping you and your customers. Since you spend less on maintaining the inventory, it costs less overall. Similarly, your company requires fewer resources to manage inventory issues, reducing workforce needs.
Parts That Work Well With VMI Systems
Not every part works well with VMI systems, but some do quite well. If your company has medium to high-volume parts, they may be ideal candidates. Likewise, anything you have that experiences frequent shortages would be worth considering. If a part can be certified for dock-to-stock, then it may be a perfect choice too.
Types of VMI Systems
In-field reps can wield barcode scanners. Then, they can manage the inventory by scanning barcodes during the workday.
Another option would be to utilize a brilliantly designed Kanban system. These act as visual cues, letting your inventory manager know when something has sold.
Consignment has been popular in some situations, and it can lower ongoing costs for you. In this system, the supplier retains ownership until the item is ready to sell.
Electronic data interchange is a fully automated system. Strict parameters are utilized to ensure suppliers know when replenishment is necessary.
