Vendor Managed Inventory
5 Reasons to have a Vendor Manage Inventory (VMI) Stock System from Star Fasteners
Star Fasteners can manage your fastener stock system for you. This can be through a physical on-site count or from data supplied by the customer. Ownership of consignment stock is passed only when the stock is used.
- Cut costs and be more efficient - VMI can reduce customers stock levels and decrease stock shortages. Accurate planning cuts the cost of storing excess inventory and reduces obsolete stock. Customers are able to eliminate high delivery costs to ship expedited orders.
- Reduce obsolete inventory - A large amount of inventory can make the stock control process more difficult to manage as it can be misplaced, lost, or become mixed in with other stock. Accurate planning cuts the cost of storing excess inventory and reduces obsolete stock.
- No more incorrect or missing stock - Not having the right products in the correct place can be a costly and an irritating problem for customers. Star Fasteners VMI bin / shelf system ensures the right products, with a consistent quality are always available in the correct location.
- Clearly labelled and organized fastener inventory - With a VMI system the stocking area and shelves are organized and well-labelled, this helps to ensure that the right parts are easily found.
- Less time ordering and replenishing stock - VMI defers the responsibility of stock management. It can reduce time and costs on administration and allows the customer time to focus their efforts on other areas within their business.
How it works?
Star Fasteners part replenishment system uses one feed bin, the racks are strong enough to ensure that the replacement stock, in their original boxes is placed next to the primary feed bin. This layout has the added advantage that the additional stock is sealed in its original packaging, complete with labels and batch details; this unopened stock cannot be accidentally used, so is an ideal way to manage inventory stock levels. The customer can request more back-up stock than would be ordinarily allowed if a two-bin system was used. The stock levels are checked within an agreed timeframe, an order is generated and new stock is delivered to site.
VMI is not just good for the customer, it’s great for Star Fasteners too! We can accurately forecast demand and ensure that our inventory covers customers’ requirements therefore making the whole supply process more efficient.
Not having the right products in stock can be a big problem for customers, we take the uncertainty out of the inventory management process.View as PDF