Vendor managed inventory VMI systems are a cost-saving tool that also streamlines inventory, reduces overhead, and helps eliminate redundancy. This technology utilizes instant feedback between business owners and the supply chain. The setup creates a more cohesive flow between manufacturers and end-users.
Customization
Shop owners can develop custom templates to manage their needs. Defining low inventory means fewer gaps and reducing wait time. The system can reduce overstocking by monitoring sales, which frees up warehouse space.
Communication
This tool brings the manufacturers, suppliers, and business owners onto the same operational page. It allows for productive communication as the goals are outlined. Once these are in place, all parties have a blueprint to work from, and the data driven vendor managed inventory VMI can keep everyone on track.
Point of Use
The teams can configure the system to track the point of use. This is one of the most efficient methods to replenish stock. The shelf space is factored into the shipment to avoid waste.
Consignment
It is possible to have consignment products with this application. The items are stocked, but the business does not own them. Once it is sold, the company will pay the supplier. Nontraditional settings often use this stocking and payment arrangement or in situations where inventory flow is not predictable.
Barcode
Barcodes, scanners, and field clerks can be part of this inventory control system. Small to mid-size operations can benefit from this personalized approach mixed with technology. The field clerk will have a running knowledge of the operation’s needs and will be able to adjust for seasonal flow.
