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.
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 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 these benefits of VMI and achieve lean manufacturing within your factory. With options like SmartBin, SmartLabel, and more, we can manage your inventory automatically 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 a more efficient supply chain.
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 ProvenProductivity@bossard.com.What is Vendor Managed Inventory? by Bossard