Streamline Your Business Operations With Vendor-Managed Inventory

All manner of businesses, from SME’s to those with turnover in the millions, who sell to trades, the public, or even those who manufacture goods, it can be difficult to know how much stock to order and to predict demand. This can result in one of two situations occurring.

First, you are left with a warehouse full of stock for which demand is slow, meaning you’re left paying to store stock as it slowly becomes outdated or obsolete. Or two, demand spikes but you are left without the supply options to meet customer demands. Not only do you miss out on the profit but customers are off looking elsewhere and building relationships with your competitors. It’s all about finding the right balance between these two extremes, ensuring you have enough stock to meet demand, without building up a surplus.

Manufacturing processes often rely on specific parts and materials and businesses need regular access to supply chains. When space is limited for storage but demand for products is high, you can’t afford any blockages in the chain. And that’s where vendor-managed inventory comes in.

So, just what is vendor-managed inventory? In short, it is the process by which your stock requirements are managed and controlled to maintain production or sales, while effectively applying cost controls. It works when the buyer provides information to a vendor who then takes full responsibility for maintaining an agreed inventory of the material in question, usually at the buyer’s chosen location. The vendor is therefore responsible for optimising any inventory held by the buyer. This kind of stock and asset management can help to streamline business operations in a number of ways, with the benefits of vendor-managed inventory including:

Improved Efficiency

VMI systems automate inventory management, reducing manual tasks and saving time. This leads to more streamlined operations and improved overall business efficiency.

Real-Time Visibility

With 24/7 real-time reporting and cloud-based platforms, businesses gain visibility into their inventory levels, helping to prevent stockouts and ensuring that the necessary materials are always available.

Cost Savings

By optimising inventory levels and reducing excess stock, businesses can significantly cut costs. VMI systems help in identifying and eliminating unnecessary inventory holdings.

Enhanced Collaboration

VMI fosters a closer collaboration between suppliers and buyers, as suppliers are given access to inventory data and can take responsibility for managing stock levels, leading to a more synergistic relationship.

Reduced Downtime

With automated replenishment and just-in-time delivery, businesses can minimise production downtime caused by inventory shortages, ensuring a smoother and more reliable production process.

Better Forecasting/Planning

The data collected by VMI systems can be used for trend analysis and forecasting, aiding businesses in making more informed decisions about their inventory needs and future procurement plans.

How We Can Help

With Vendwise, say goodbye to stockouts, over-ordering and inventory chaos. Embrace a world of precision, reliability, and unparalleled control over your vendor-managed inventory.

Download our brochure to find out more!