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Vendor Managed Inventory

Vendor Managed Inventory


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When it comes down to it, companies and businesses want to make the most of everything they have.  From supplies and shipping to logistics and everyday business practices, the goal is to be profitable all the way around.  For those who sell products to consumers and other businesses, this usually means that there is some type of inventory on hand.  This is where vendor managed inventory can be very useful.


How Everyone Benefits

For manufacturers and distributors, the vendor managed inventory is one that is utilized for many reasons.  It allows both parties to work together efficiently and in the long run, provide better service to the customer. 

Some of the biggest benefits of vendor managed inventory include:

  • Reduce Costs – Operating costs are something that can have a big impact on any business.  Many businesses use vendor managed inventory because it allows them to streamline and thus reduce their overall operating costs.
  • Lower Errors – Nothing is more frustrating that having an order come in incorrect or sending out the wrong amount of product to a store.  Vendor managed inventory is used to help reduce the number of errors.  This allows both manufacturer and distributor to be able to more accurately get product where it’s needed and in a timely manner.
  • Better Planning – Planning for adding or introducing new products or a line of products can be hard but with vendor managed inventory, it’s actually much easier.  It allows vendors to actually know about the lines well enough in advance so that they can offer it to the stores sooner.  Then, when the line or products come out, they can get it to where the items are wanted.
  • Reduce Ordering – Vendor managed inventory allows companies and businesses to have more freedom over how much they order.  It also allows manufactures the chance to offer more products.  This in turn, helps both manufacturer and distributor to know what is being bought and then makes it easier for orders to be made.  Instead of having multiple orders, the orders can be reduced to smaller ones but with larger quantities.


Overall Growth

Manufacturers and distributors both will see growth in overall sales due to using our vendor managed inventory.  By making it easier for both parties, to track what is going out and how often, they can adjust production lines and make better decisions on how to operate things.  This saves time and money which are two very important factors for any manufacturer or distributor to consider.