What is Vendor Managed Inventory?

#4 Vendor Managed Inventory with Bossard

Modern industrial capacities and communications technologies make it possible for vendors to supply their clients with exactly what they need exactly when they need it. The ability to get crucial materials and parts to customers in a manner that virtually eliminates the need for long-term storage and related product loss is a must. Current communications technology enables vendor managed inventory (VMI) to supply needed production items promptly that ensures continued efficiency while also reducing costs.

VMI Explained

Vendor managed inventory offers a great deal of appeal to potential customers who need specific items at specific times during the production process. The best way for clients to ensure they have the materials needed to accomplish their goals is for a vendor to monitor the supply and replenish it before it runs out and halts production.

The vendor might be the manufacturer or a distributor of a particular item that the client needs to continue production. Many industrial operations have limited storage space and incur higher costs when storing large quantities of parts and materials that might not be needed right away. Instead of keeping those items on-site, a VMI program delivers them on time to ensure production continues. 

Benefits of Vendor Managed Inventory

A properly run VMI program reduces production and operating costs while enabling greater workplace efficiency. The vendor provides the initial items and monitors the supply using current technologies that provide real-time data analytics on the client’s supply of goods. The lower costs make clients more competitive in their respective markets while also helping to improve product quality.

As production needs change over time, clients can inform their vendor partners of the changing needs and budgetary constraints. The vendors can either produce the items within the provided engineering specs or use them to locate the ideal products. Once secured and delivered, clients can use the new and improved materials to manufacture better products at more competitive prices. Advancements in smart technology will make already highly beneficial VMI systems even better while regularly streamlining the production process. 

Smart Factory Logistics

With Bossard’s exclusive Smart Factory Logistics systems and solutions, you can experience the benefits of VMI and achieve lean manufacturing within your factory. With options like SmartBinSmartLabel Cloud, and more, we can automate your inventory management and make sure you have the products you need when you need them. Furthermore, with solutions like Supplier Consolidation Solution, Bossard can help you optimize your supplier base to create efficient supply chain management.

Our interactive ARIMS platform also allows you to have full visibility into and control of your inventory levels and material flow. And with the ARIMS mobile app, you can access the information right from your factory floor.

For more information about our Smart Factory Logistics methodology, email us at





4 Inventory Management Strategies to Help Your Business Succeed

5 Lean Manufacturing Principles to Improve Efficiency

May 14, 2021
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4 Inventory Management Strategies to Help Your Business Succeed

When you’re in a business that keeps inventory, having an efficient inventory management strategy is critical to growing your company. Effective inventory management strategies allow your business to track your stock levels efficiently, saving you time and money. Your goal is to minimize the cost of holding inventory without losing the ability to provide customers with what they need when they need it. 

Inventory Management Strategies Matter

Not paying attention to your inventory levels can cripple your business. Even big companies like Walmart have had inventory management problems. They have since recognized these issues and used various inventory management techniques to overcome their obstacles. Here’s how you can do the same:

1. Automate your inventory management

It may work for a while to manually track your inventory, but it will become cumbersome at some point. You’ll eventually need to move to something more efficient. Inventory management systems take the guesswork and human error out of the equation and allow everyone to be on the same page. 

2. Be aware of transit time

Knowing how long it takes you to get a new product in hand will help you plan better and avoid out of stock or backorder issues. If you’re ordering from overseas, that means that by the time you realize you’re out of a product, you’ve now got to wait upwards of four or more weeks to get it in hand again. 

3. Pay attention to the data

Data drives your business in many ways, and inventory management is no different. Knowing the numbers and the history behind your ordering can help you plan. 

4. Be consistent

However you decide to manage your inventory, it’s important to be consistent in how you receive, track, and purchase it. This includes your auditing processes. 

Getting Your Inventory Under Control

Utilizing these strategies are just some of the ways you can make managing your inventory and supply chain easier. Bossard Inventory Management is ready to help you incorporate these and many other strategies so your business can succeed. 

March 05, 2021
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