How to Choose the Right VMI Partner

Allowing a vendor to manage your inventory of your materials requires a level of trust. You must feel that the vendor is capable and reliable. How do you ensure you’re choosing the right partner? Check out the following tips to know where to start.

Choose a Partner with an Established VMI System

Managing a customer’s inventory is no small feat. Sourcing materials for 5-5000 SKUs, kitting those materials, managing fulfillment, calculating shipping dates and demand levels is a complex process. Spreadsheets won’t get it done. That’s why it’s important that your vendor knows what they’re doing. Your vendor should be able to automate the integration of your MRP forecast with their own demand and production planning systems. They also need to be prepared to tackle the complexities of a VMI and consignment supply agreement.

Joint-Business Rules

Your vendor should work with you to learn the ins and outs of your business, supply chain and needs. Together, you should establish the goals and objectives of your MRP based VMI process, including minimum and maximum acceptable inventory levels.

Data Interchange

Understanding of your MRP is vital to vendor managed inventory. To ensure the highest level of efficiency, utilize an automated data exchange such as EDI or XML. This will greatly diminish the risk of human error and eliminate the need for back and forth calls, purchase orders and invoices.

Customer Service

VMI requires relying on your vendor for vital components of your final product. This means communication is crucial. Be sure your partner has full capability to provide you with the communication and customer service you need.

VMIEdge

At EPI, we know how much time and effort it can take to manage print and subcomponent inventory and that’s why we’ve developed a comprehensive VMI solution we call VMIEdge. This solution combines best practice lean manufacturing and supply chain techniques, as well as sophisticated IT integration capabilities and a scalable, flexible printing and fulfillment infrastructure. To learn more about VMIEdge and the dedicated account manager who would serve your team, schedule a consultation with us today.