There are a ton of benefits associated with vendor managed inventory (VMI). But here's one that really hits home for anyone in engineering or purchasing who is involved with the management of class "c" components: a VMI supplier can smooth out every aspect of the operation from ordering to packaging to delivery to payment.
Think of a VMI supplier as "The Fixer."
Let's say you need widgets, or another class "C" component such as industrial fasteners, automotive fasteners, engineered fasteners — any of the countless clips and fasteners you go through on a daily basis.
So you contact the fastener manufacturer and start to place your order. What could be simpler? Well…
What if the fastener manufacturer only takes EDI orders?
What if the manufacturer demands 30-day payment?
What if you're required to take a quantity of widgets that is way more than you need?
What if you can only get delivery on a certain day – and it's not the day best for you?
What if you have to place your order 12 weeks in advance?
All the things that your fastener manufacturer needs to do to be efficient in his business simply don't jibe with what you need to be efficient in yours. They have their rules on how to make, sell, and deliver; while you have your own rules on how to buy and receive delivery.
You need "The Fixer."
A vendor managed inventory supplier can quickly take care of those challenges for you. He's "The Fixer," "The Connector," "The Ombudsman," "The Mediator." Your vendor managed inventory specialist is who you call to make every step of the process seamless.
Let's say your process calls for paying in 90 days, but the manufacturer says 30. If you can't pay in 30, you're out of luck. Unless your work with a VMI. In that case, you just tell your VMI supplier to get what you what you need and pay the manufacturer in 30 days. That's what they're there for. That's what they will do. And that's one of the huge vendor managed inventory benefits.
Another example. You need to have your class "c" components packaged in a certain way. But the manufacturer of your custom fasteners or whatever says, "Uh-uh. This is how they're packaged when they come off the packaging machine — no matter who wants them or where they go." Sounds like a problem.
Enter "The Fixer."
A vendor managed inventory supplier will handle the packaging and optimize it to your specific requirements. This is particularly important on overseas shipments where inefficient packaging can be extremely costly.
As you can see, vendor managed inventory benefits reach all areas of supply chain management and inventory control. Your VMI supplier fills the gap between the manufacturer's requirements and yours.
If you're interested in getting a "VMI Fixer' on your team, a good place to start is by contacting Marty Monforton at ASF Components. ASF is a leading VMI supplier that knows what it takes to provide you optimum levels of quality products.