Why Vendor Managed Is Vital For Your Business
Our vendor-managed inventory service can have far-reaching benefits for your business and customers. Some of the reasons why you should consider working with us include;
Reduced inventory costs
Our VMI services help you optimise your inventory levels and minimise excess stock. By ensuring you have the right amount of stock, you can reduce warehousing and storage costs and other obsolescence costs. You can also save on the manpower you need on the warehouse floor, reducing your overheads while ensuring a better and more efficient operation for your customers.
Improved supply chain efficiency
With VMI, we take most of the responsibility for inventory management, allowing you to free up resources and focus on the more core activities of your business. This improves overall supply chain efficiency and allows you to take up endeavours that can grow your business, like marketing, while we work to ensure you have the right stock for your business.
Better customer service
Just as you will have a better experience with our VMI service, so will your customers. We ensure you have the right products available when needed reducing stockouts and improving fill rates. You never have to turn another customer away because you don’t have the right ring, spring or fastener in stock. This will translate to better customer service and satisfaction because your customers can rely on you to get the products they need.
Improved demand forecast accuracy
We have decades of supply chain experience. We understand the multiple industries that use our products and the market trends that influence the demand for our products. With the addition of any sales data you can provide us, we have better visibility of the demand patterns, facilitating more accurate demand forecasting and reducing the risk of stockouts and overstocking.
Reduced lead times
With our VMI, we can closely monitor inventory levels and demand. We can proactively replenish your stock resulting in shorter lead times. Your buyers can receive their goods faster, and you can reduce the time between order placement and delivery.
You also have the added benefit of our in-house engineering team and manufacturing capacity for buyers interested in customisation. Our in-house processes reduce waiting time and increase efficiency on complex orders that require re-engineering or customisation of the rings, springs or fasteners to fit specific applications.
Stronger supplier relationship
As you preferred VMI service, we take time to understand your business and its needs. We work to foster closer collaboration and communication to ensure you can respond effectively to your needs and build trust and transparency. Our interest is in mutual growth, and we have the resources and willpower to see yours and our business grow.
When you work alone, you run all the risks and costs, which can sometimes be too much for your business. But with a VMI, the vendor shares the risks and even some of the costs with you giving you a competitive edge and lower risk exposure. With our experience and technology, you can lower your exposure to risk with things like overstocking. We can help you streamline your business and minimise unnecessary overhead costs like storage for slow-moving stock. Instead, you can place orders for such stock when needed.
How We Add Value to Our Partners
Besides the many perks that come with using our VMI service, you also get to benefit from the various ways we add value to our partners like;
- We offer product expertise for buyers looking for insight and direction on our best solutions for various applications and projects. We also have technical design capability and support stock rationalisation and standardisation reviews through our ongoing review process or RFQ.
- We provide continuous support, including regular business reviews and cost management proposals for resourcing alternative supply options.
- You will receive regular site audit surveys from our experienced VMI advisors.