Many manufacturers today utilize the proven Just-in-Time (JIT) model for inventory management, keeping just enough inventory on hand to keep production rolling without having excessive capital tied up maintaining large quantities of parts in stock.
If you own or manage a manufacturing or assembly facility or a retail business and you’re looking for a reliable way to better maintain your inventory this year, we recommend a vendor-managed inventory (VMI) model. This strategy features a pro-active vendor/customer relationship in which the vendor actively maintains a level of product in stock for the customer, eliminating concern for running out of a particular product. VMI works for a wide variety of industrial and commercial companies as well as for retailers.
A properly-maintained VMI program can be crucial for any manufacturer, distributor, or assembly house that depends on having the correct number and size of parts in stock, enabling them to maintain a constant production level. Poorly-maintained inventories run the risk of expensive production downtime when inventory runs out or can result in unnecessary added expense from overstocking.
VMI also benefits retailers who can take advantage of the supplier’s resources to ensure that inventory is properly maintained at all store locations. Suppliers will even help determine inventory levels, suggest product lines to stock, and even help control displays and maintain point-of-sale programs (POS) to boost sales.
Seasonal fluctuations, manufacturing processes, market conditions, and product lifecycles can all significantly effect inventory demand for original equipment manufacturers, assembly houses, and distributors. It’s critical for suppliers and customers to maintain effective communications and establish appropriate stocking processes that enable inventories to be efficiently managed. Often that means integrating vendor/customer enterprise resource planning (ERP) systems for seamless inventory monitoring and management.
In fact, a well-run vendor-managed inventory program provides customers with a number of benefits, including:
- Reduced data entry and ordering errors
- Improved purchase order timing – POs are automatically generated on a pre-determined schedule
- Improved service – greater right-product/right-time percentage rates
- Decreased stock-on-hand due to more efficient planning, reducing money and space tied up with unnecessary inventory
At Electronic Fasteners, we have a comprehensive VMI program that makes it easy for you control exactly how much and how often you receive the parts and products you need. Our VMI program can help you reduce costs and streamline your supply chain while boosting productivity for greater output and profits.
Make this year the year you reduce your risk and inventory expense by switching to a more efficient and effective way to control your inventory – a VMI program through Electronic Fasteners.