VMI Whitepaper: Vendor Managed Inventory

It’s one of those things where if you haven’t ever had a vendor managed inventory (VMI) system--you won’t know what you’re missing. However, if you do have one--you’ll wonder why you waited so long.

Here’s what Baker Hughes’ buyer Barbara Berry had to say about VMI and Hisco -

The VMI Hisco team exceeded my expectations. From the coaching--to the emails that guide you along all the steps--to adjusting our inventory when market conditions change.

The best VMI includes a strong partnership between all those involved

Yes, Hisco will be with you every step of the way. Training, shared understandings, communication, pre- agreements and--preplanning for events--like changes in inventory demand--all part of the partnership and the VMI system.

Inventory control = cost savings; cost savings = inventory control

Easier adjustments to market changes are just one of the many benefits of adopting a VMI system. Two other major benefits—inventory control and cost savings. Remember Newton’s Cradle and how it worked on momentum? The metal ball on one end caused the metal ball on the other end to move and vice versa. That sums up the Hisco and Hughes Berry VMI partnership, as well as the relationship between inventory control and cost savings.

Here’s more from Barbara Berry -

These machines have been wonderful for inventory controls. We are setting up more to house our wire which should provide an annual cost saving of $30,000 and up just by controlling the inventory.

The secret’s in the software

With Hisco’s VMI system you’ll have a third partner as well—SupplyPro—providing intuitive, industry leading software and point-of-use vending equipment. With SupplyPro you’ll gain control of your inventory activity throughout the supply chain. Together, we’ll get the momentum going.

What’s Your VMI IQ?

This is just a teaser of what you’ll receive when you adopt a VMI program. Contact Hisco for more information and discover all of the documented cost savings you’ll realize with a VMI system.

A Glimpse of Your VMI Future
Before After
Inventory measurements not readily available Restocking based on real-time inventory tracking
Stock-outs and costly overnight shipments Improved product availability due to timely data and replenishment planning
Time consuming manual item check-outs Electronic inventory sign-out and data capture
Time consuming data-sharing processes Data available to multiple people as needed
Disjointed understanding of activity at all/multiple sites Activity data electronically linked from all sites
Time and money spent writing purchase orders Reduced administrative overhead
Time-consuming management of inventory Extra time to strategize and gain a competitive advantage over non-VMI users
Inaccurate or incomplete market information Dependable market information based on usage patterns and inventory depletion
Guessing about product mixes Optimized product mixes based on real demand
Disappearing inventory Manage accessibility and enhance employee accountability
Items on the shelf that don’t sell Reduced inventory carrying costs with optimized stocking
Out-of-date items and obsolete inventory Tracking helps you eliminate obsolete inventory=lower overall cost of ownership

 

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