Vendor-Managed Inventory Solutions
Maintaining your product inventory at a level that allows immediate fulfillment while keeping storage and related costs down is challenging. We provide vendor-managed inventory (VMI) services that relieve your team of this task. VMI is a supply-chain management concept that refers to inventory planning in which a buyer or retailer shares inventory information with a vendor or supplier who then makes decisions on order sizes.
In-house or third-party logistics providers (3LPPL) can also help ensure the buyer maintains the correct inventory levels. In a vendor-managed inventory contract, the vendor is responsible for the buyer’s ordering costs, and the buyer is responsible for their own holding costs. In vendor-managed inventory systems, businesses are less likely to run out of stock, while still keeping inventory low in the supply chain.
Contact us today to learn more about our vendor-managed inventory services.
Advantages of Vendor-Managed Inventory Control
Properly executed, vendor-owned inventory management ensures that customers get the product they need when they need it . And, since inventory levels are kept at a minimum, vendor-managed inventory delivers significant cost reductions. Some of these savings come from minimized purchasing-related administrative costs. For example, the purchasing department spends less time calculating product-purchasing orders and handling order corrections and reconciliations.
Other savings come from reduced warehousing and inventory costs. Vendor-managed inventory benefits the supplier or manufacturer by integrating buyer-provided point-of-sale data and improving order forecasting models. With more insights into inventory levels, manufacturers can reduce stock-outs and back orders.
Is vendor-managed inventory right for your organization? Find out.
Proven Vendor-Managed Inventory Solutions
Our vendor-managed inventory solutions provide:
Liaison between manufacturer and customer
Reduced lead times to customer
Expediting parts from suppliers
Letting an experienced VMI company like NewStream manage your inventory reduces friction and lowers costs. From inventory planning to expediting, a strategic business alignment with our company can improve planning, forecasting, and customer service, and can establish a just-in-time delivery approach, while reducing lead times to your end user.
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