Let’s face it, depending on your business you have to carry various parts and products to keep your production team going. From a business standpoint, we understand you can’t sit on excess raw material, tying up large amounts of cash and space, but it is also costly if you run short. Understanding the balance between having the bare minimum amount of inventory to sustain production is a delicate balance.
We at EFI, understand this process. That’s why we created our Vendor Managed Inventory Program (VMI). We house over 25,000 different items, that’s more than 100 million pieces in our 30,000 sq foot warehouse.
Our VMI Program helps to reduce your overhead costs!
At Electronic Fasteners, our VMI program provides our customers with several significant benefits, starting with the consistency of pricing that comes with committing to a certain annual purchasing volume based on anticipated need. Quantities delivered throughout the year can be varied based on seasonal or other needs, minimizing the risk to our customers of carrying too much or too little inventory on hand at any given time.
When you enroll in our program, we can substantially help increase the efficiency and cost-effectiveness of your inventory management so you avoid pricing fluctuations and unnecessary shipping costs. But pricing consistency is just one way our customers save money with our VMI program. Studies have shown that 85% of fastener costs are related to inventory overhead activities such as administration, inspections, and over-ordering – a mere 15% of the fastener cost is the actual item.
Our VMI program enables our customers to:
- Reduce administrative and other costs
- Receive more reliable delivery
- Have more accurate inventory management
- Improve inventory quality
- Experience fewer stock-outs
If a VMI program sounds like a good idea for your manufacturing operation, our dedicated VMI department is ready to help you set one up. We’ll design a stocking plan based on your specific inventory needs and deliver your components according to a prearranged plan so that you neither run out of critical parts nor sit on too much inventory, tying up valuable resources.
Your product is stocked at our warehouse, ready to resupply your on-site inventory. We actively monitor the status of your parts at no extra charge, using bar-coded bins and stocking locations as well as regular inventory management reports that we review with you to ensure the timeliness and accuracy of your inventory supply.
To learn more about our VMI program and all its benefits, contact our us today.