How Vendor Managed Inventory (VMI) Can Improve Productivity & Efficiency

By IBT Inc

February 11, 2019

Supply Chain

In today’s business world, most of us are doing several jobs at once. Proper management of inventory in a storeroom can tax even the most skilled managers—and data overload is a common issue.

These daily issues led to the concept of Vendor Managed Inventory, also known as VMI. The process is designed to streamline inventory management and reorder procedures.

If you spend a majority of your day asking these questions, a VMI program could help you improve productivity and efficiency:

  • What do I have?
  • When was it used?
  • How long does it take to get it replaced
  • Where can I get it?
  • Where does it go in the storeroom?

IBT’s VMI program takes these day-to-day logistics off your plate, giving you back the time and resources you spend replenishing inventory. Managed by IBT’s experienced product specialists, and supported with the extensive inventory at our local stores, VMI represents a significant cost-savings. Best of all – this second-to-none service is available to all qualified IBT customers.

IBT’s VMI service is a 3-step process that is quick and easy to implement:

  • Your IBT representative barcodes the items IBT will manage.
  • You determine the Min and Max values for each managed item.vendor managed inventory
  • Your IBT representative will return periodically to check and replenish your inventory.

With IBT’s involvement in your storeroom inventory management, you will also achieve:

  • Elimination of stockouts and expedited orders
  • Reduced rush freight costs
  • Increase return on asset investment
  • Elimination of routine replenishment activities
  • Reduced fulfillment costs and lead times
  • Increased operational efficiency
  • Increased inventory accuracies
  • Identification of non-moving inventory
  • Orders can be filled automatically or be sent to the customer for approval

Ready to discuss your specific needs and requirements for VMI?

To reduce workload where you can, put your storeroom on the path to zero stock-outs, and reduce freight costs, contact Ken Prettyman, IBT Operations Support Manager, at kenp@ibtinc.com or 913-261-2105 today!


 

Learn more about our VMI service as part of a National Accounts program »