As a business owner, finding ways to effectively streamline the operation of your business is always a goal. With any type of business that maintains an inventory, a vendor managed inventory (VMI) system can offer high levels of efficiency, reduce the challenge of maintaining the stock balance, and help to ensure your business is never left scrambling due to low inventory levels.
Different vendor managed inventory (VMI) systems may operate slightly differently, but they all use a third party to manage the inventory levels at the business or at a designated location. This is done in consultation with the business, allowing for the development of the appropriate inventory levels based on the specific product.
Immediate Reporting
The top VMI providers use technology to make the system even more effective. iPhones can be used as scanning devices through customized apps, allowing for easy tracking, recording, and access to information on orders as well as inventory levels.
This is particularly important with small items, such as fasteners and industrial supplies. With real-time scanning, the VMI program ensures that orders are processed to maintain the required inventory levels and to prevent shortages or out of stock issues.
Value-Added Considerations
Using a vendor managed inventory (VMI) program also provides for more efficiency in accounting, invoice payments as well as in supply chain management. The VMI provider streamlines the entire process from the initial placement of the order through to the ability to use data to forecast future order needs, which is particularly important for seasonal items and special items that may only be required by specific end customers.
All of these factors make VMI programs a cost-effective option to consider for any small business. With the value-added services and the highly efficient inventory systems, a VMI program soon becomes a staple part of your operation.
