Vendor Managed Inventory: Finding the Right VMI Manufacturer to Partner With
As a supplier of industrial hardware, fasteners, parts, or related materials, you must work with manufacturers who offer parts quickly, accurately, and efficiently so that you may provide the best service for your clients. Throughout your experience, you have probably discovered that having trusted partnerships with manufacturers is more valuable and beneficial than relying on transactional relationships. This is best achieved by coordinating your Vendor Managed Inventory (VMI) program with American Belleville. By partnering with an experienced VMI Stock Supply Chain Partner like us, you can enjoy an array of benefits such as cost savings, forecasting, inventory management and more. Read more to learn the benefits of VMI programs, and what you should look for in a VMI partner.
What is a Vendor Managed Inventory, or VMI Program?
A Vendor Managed Inventory program, or VMI program, is an arrangement where your client provides you with information about what parts they need and when they need them. Then, you are responsible for maintaining the agreed-upon inventory schedule, usually at your client’s location. By working with an experienced vendor for your VMI program, such as American Belleville, you will be able to trust that our products including disc springs, flange washers, load washers, and Belleville washers are there when you need them, made right the first time, and properly suited for your client’s applications. So, what other attributes should you look for in a VMI Stock Supply Chain Partner?
Benefits of Arranging a VMI Program
Your clients may reap many benefits from setting up a Vendor Managed Inventory agreement with you. Benefits of VMI programs include:
Inventory Forecasting and Management
VMI programs allow your customers to plan ahead for future inventory needs and receive reports of inventory supply and performance. Customers can always have enough inventory on hand when they need it by properly forecasting their needs to establish the appropriate VMI stock levels throughout their supply chain. They will experience fewer shortages with VMI programs, while never having too much inventory which can take up too much space on your shelves and inefficiently affect cash flow for your organization. They can accordingly plan for peaks and valleys in usage patterns and maintain the necessary stream of supply.
Service Consolidation
Customers can take advantage of no minimum-buy quantity with a VMI program. Plus, they’ll have just one order to manage and lower long-term inbound freight costs, which will streamline product shipments. Certain shipment value thresholds may also offer prepaid freight opportunities. It is a solution that provides consistency and time-saving advantages for your customers.
Cost Savings
Time is money, so with the forecasting and reporting benefits of VMI programs, your customers’ staff can spend their time on other tasks. Plus, VMI programs offer consistent inventory levels, so customers won’t have to pay extra for rush shipping. And, your customers will only spend money on parts when needed. So, they won’t tie their money up unnecessarily in extra inventory.
Partner with Trusted VMI Stock Manufacturers for Supply Chain Certainty
VMI programs are an important part of our industry. And you must be able to rely on dependable manufacturers to properly establish a VMI program with a customer. American Belleville has years of experience supplying Belleville washers, flange washers, disc springs, and load washers for suppliers with VMI programs. So, we understand the kind of timely, responsive, accurate service that these arrangements can demand. When looking for a VMI Stock Supply Chain Partner, these attributes are essential for ensuring the quality of the VMI program you establish. We can even help walk you through the process of building an agreement for your clients.
Choosing a VMI Stock Supply Chain Partner is an important decision with many moving parts (literally!) So we urge you to find a partner with the knowledge, track record, flexibility, and responsiveness to support your VMI program. Please contact us to get started!
