An efficient supply chain is essential to the bottom line of a business. It can help each the supplier and buyer make certain each has the best amount of a raw material inventory available at any given time. |
With Vendor Managed Inventory (VMI), the supplier manages the level of products and only ships additional things when pre-determined minimum levels are reached. This is a change from the traditional model where a supplier ships material based on a single purchase order sent from the customer. The traditional procurement method can result in both excess inventory and shortage of material. This way offers an ideal solution to avoid that.
Additional VMI features include having the supplier supply the actual bin monitoring service. This allows the supplier to watch the bins first hand which provides a labor savings to the buyer. The advantage of this method is greater customer and supplier material use and demand communication.
Taking a proactive approach to logistics ultimately results in reduced overhead and improved fill rates. At Herndon Products, we make certain that we consistently provide our clients cutting edge supply chain solutions that are centered on cost and efficiency improvements. We pride ourselves on causing your supply chain to function as efficiently as possible.
Call today to find out how Herndon Products can serve your business needs!
Related Articles -
VMI, vendor management inventory,