Do you find yourself ordering from your nut and bolt supplier more often than usual? Maybe you sometimes run out of materials, and it costs you in precious downtime. You may wish to check into an industrial supply distributor offering a VMI program. Here is more about this important benefit.
Vendor Managed Inventory
VMI means vendor managed inventory. The customer and supplier are connected via high-tech and sophisticated software programs. To demonstrate, here is how a typical “non-VMI” situation may play out. A business is running low on 25 mm flange bolts. They notice there are only a few on the shelf. Now they need to contact their nut and bolt supplier about ordering more. The supplier may send someone to the warehouse to check out the materials, take the order, and then place the order for more materials.
It may take days or even weeks to get your materials. In the meantime, you run out of product, and irate customers go to your competitor. In fact, they may give your competitor all their business.
How a VMI Works
If you are running low on materials like 25mm flange bolts. The customer may receive a text or email about the situation. Next, someone can go to the stock area and scan the barcode, placing an order for a pre-set amount of bolts. This can happen very quickly, and there is no need to call nut and bolt suppliers and wait for the order process to unfold. In some cases, ordering can be automated, and the supplier takes care of inventory management.
Benefits
You can enjoy increased sales because you do not run out of popular products. With outsourced inventory control, you have fewer employee-related expenses. This can give you a more efficient and leaner business.
