ANALYZING THE DIFFERENT TYPES OF VENDOR-MANAGED INVENTORY SOLUTIONS
Keeping abreast of inventory can become a nightmare. Any misstep can negatively affect customer relations and the bottom line. To help reduce the stress associated with inventory accounting, consider an off-site approach. Known as vendor-managed inventory, solutions to your problems can be easily addressed.
Vendor Management Inventory (VMI)
VMI is defined as an arrangement wherein the business permits its supplier of goods/vendor to manage the inventory. It has the responsibility of managing all aspects of inventory control/administration. Doing so requires the right tools and the ability to recognize and implement the right type of VMI systems including the following:
Bin Stocking: This is an on-site process that utilizes bar codes and other technology to provide information for a supplier to provide vendor-managed inventory solutions to ensure product availability when items of existing stock quantities fall below a specified minimum level
Point of Use: This is a JIT that sees the necessary inventory arrive as close to required use as possible.
Electronic data interchange (EDI): This is a hand-off or system-to-system VMI system. This provides the supplier with what it requires to plan the inventory and engage orders.
VMI is a strategy used to reduce inventory-related costs. It provides more accurate inventory accuracy. A collaborative effort, it intends to provide smoother accounting and lower costs. At Field our engineers, VMI Reps and account managers proactively work with you to find cost-saving ideas and provide you with an approach to reduce costs and ensure quality. For more about our vendor-managed inventory solutions visit https://www.fieldfastener.com/.