How VMI Saves Money and Increases Efficiency

If you’re seeking the opportunity to improve your supply chain management – whether it’s because you’re looking to avoid obsolescence or you want to simplify the intense administrative effort, vendor managed inventory (VMI) may be just what you’re looking for.

A comprehensive VMI system simplifies the massively complex task of translating your MRP into a process of sourcing, producing, kitting and fulfillment. Imagine your subcomponent kits of 5-25 individual SKUs all being condensed into a single SKU that is always ready to go when exactly when you need it – that’s VMI. You need VMI because it will help you with the following

Reduce Administrative Effort

VMI relies on automated data interchanges, such as EDI or XML, to communicate your MRP and inventory levels. It removes the need for back and forth phone calls, purchase orders and invoices. Think of all the time you’d save without the extra steps. When you can step away from these manual administrative tasks, you’ll be free to focus on your core business. Reducing touch points also greatly reduces the risk of human error.

Greater Efficiency

With VMI, the vendor is responsible for sourcing components or managing your owned materials. They will take 5-25 SKUs of loose materials and condense them down to a single kitted SKU. From there, vendors will utilize your MRP to determine their own production schedule and fulfill your inventory needs. This ensures you will also have the materials on hand exactly when you need them.

Avoid Obsolescence

VMI offers a much tighter demand cycle. You receive product only when you need it, which means you greatly reduce the opportunity for obsolescence. When it comes time to update your materials, you won’t have to worry about nullifying your existing inventory and having to destroy those materials – which also helps to reduce waste and the associated costs.

Lower Total Cost of Ownership

VMI helps companies reduce warehousing costs, lead times and obsolescence. Maybe a little more difficult to measure, but also still greatly important, it also reduces costs associated with the administrative effort it takes to manage all of those materials. All of this contributes to savings in your total cost of ownership.

Ready to Learn More?

Our comprehensive inventory management solution VMIEdgeis designed to make managing your inventory significantly easier and more efficient. We want to help reduce the time and administrative effort spent on managing these relatively low cost items and materials so you have more time to focus on your core business.

EPI can produce all of your printed materials, source your non-printed materials and manage your owned materials. We use automated data interchanges to read your MRP and then automate our own production and fulfillment schedule. With EPI, you get the support of a an experienced vendor who is ready to meet your needs.

To learn more about VMIEdge, how it has helped our clients save money and increase efficiency, and how it could help your company, schedule a consultation with our team.