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You are here: Home / VMI / The Benefits Vendor Managed Inventory for C-Component Supply Chains

The Benefits Vendor Managed Inventory for C-Component Supply Chains

May 13, 2020 By Birmingham Fastener

vendor-managed-inventory

Vendor Managed Inventory

Vendor managed inventory (VMI) systems have a wide variety of benefits to OEMs looking to increase production pace, avoid stock-outs, and reduce total cost of ownership (TCO). As an OEM, you know the importance of having proper inventory levels. Running out of particular fasteners can halt production and affect project time and hurt your bottom line. To streamline processes and maximize the efficiency of your supply chain, your OEM needs a reliable vendor to manage inventory.

As a VMI supplier, Birmingham Fastener ensures you have the parts you need when you need them by monitoring inventory levels and restocking parts before you reach critically low levels. This allows you to continue production on schedule and avoid expedited shipping fees when parts run low.

The advantages seem obvious for any VMI partnership, but choosing the best VMI partner for your OEM can make all the difference in your supply chain. Find a partner, like BFMI, that develops customized strategies tailored to your supply chain and provides 100% on-site project management. This includes strategies for inventory replenishment, value stream site mapping, and logistics tracking.

Having a VMI partner that provides value-added services in addition to regular stock replenishment ensures your inventory is lean for maximum profitability. Instead of estimating numbers and stocking blind, a partner like BFMI leverages your usage data to guarantee lean inventory and reduce not only the physical storage space of your inventory but also your overall part expenses, improving your bottom line.

With the help of VMI experts, your OEM can improve uptime by reducing time spent on tedious tasks like sourcing, data entry, part inspection, and replenishment. Without a VMI program, you and your employees spend countless hours on inventory management instead of focusing on production. By outsourcing inventory management, you can empower your team to devote time to production and maximize efficiency throughout your operation.

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Filed Under: VMI Tagged With: blogs, VMI

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