The most obvious advantage of implementing a vendor managed inventory program is that it frees up your time and resources. If you’re a small business owner or are in charge of managing inventory for a larger company, the logistics behind ordering and tracking supplies may seem daunting.
However, with many VMI programs available, your vendor will handle all aspects of keeping your shelves stocked. When you speak with an inventory expert to begin planning VMI for your supply chain management program, even more advantages become evident. You’ll want to take note of these benefits:
• Greater Accessibility – One advantage to this type of program is that it allows for a longer supply of merchandise. When you have inventory managed, the vendor is ordering new inventory or other supplies to keep your company stocked. You can rest easy knowing that your vendors provide you with countless hours each week by handling all aspects of purchasing and receiving.
• Reduced Inventory Costs – The ability to cut down on excess inventory that’s not in demand is another major advantage of VMI. This system has been proven effective at ensuring only necessary stock levels are kept available for your customers and employees.
• Strategic Purchasing – Because your vendor will manage sales trends, they can strategically place purchase orders based on predicted demands instead of incurring the cost of excess stock sold off as part of clearance sales. This helps you avoid carrying excess inventory in the future.
Instead of trying to handle all aspects of an effective supply chain management program by yourself, why not take advantage of the additional time and resources that go along with a vendor managed inventory program? As long as you have a great relationship with your preferred vendors, this option can pay off in more ways than one.
