Vendor Managed Inventory
This past year with how the market has been tighter and allocation has become a norm, a VMI inventory can be very helpful. Here we provide a snapshot of the inventory to our customers, so they can help maintain inventory and really manage it more effectively.
So it sounds too good to be true right? It really is not! It works like this, the company gives us parameters of stock to work with, and we order and maintain those parameters. The mills like it because we can give them forecasts and we order on a timed schedule than just randomly. Saving both time and trim if you need a hot project.
Here is another advantage like what I am going through with a current customer, say the mill no longer wants to make the grade you are printing on. With VMI we have a little bit of time to know so you can at least fill 1-2 orders before running out and changing. It helps manage pricing as well. You get pricing information as it goes and usually have time to prepare for it.
So are there drawbacks? Yes, there are a couple if you customer changes sizes to a larger size outside what the program can do it can be very ugly for cost. Say we have 50” rolls for your 25x33 sheet and the customer changes so they need a 40x23 short-grain sheet. That is now 10” of trim the customer/printer would need to absorb. So this is best managed at a level of consistent business. Items like food packaging or bands for frozen items.
So if you have that pocket of business you are struggling with keeping a consistent supply chain, give us a call maybe we can help ensure your success for the future.
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