Hello again, and thanks for tuning in to the last episode of our supply inefficiency video series.
In our previous videos, we talked about the various expenses associated with the total cost of ownership, or TCO.
Now, let’s look at how a vendor managed inventory, or VMI, solution addresses these five supply inefficiencies.
Labor costs associated with procurement, receiving and stocking are the basic and most significant costs eliminated with a VMI program, freeing a manufacturer to focus on greater areas of cost savings.
Since a VMI provider warehouses your inventory at a nearby distribution center, carrying costs and freight charges are practically eliminated.
A VMI partner will handle preliminary quality inspections and will keep a safety stock on hand and on order, making error-related costs like stock-outs and expedites a thing of the past.
Finally, working with a VMI partner like Falcon Fastening gains you access to a high-quality supply base offering better prices and faster lead times.
Contact us today to schedule an inventory cost reduction assessment and learn how much you could be saving with a VMI program from Falcon Fastening Solutions.
Falcon’s Reliable Stock™ lean VMI program delivers 100% production uptime efficiency and reduces your lead times, while lowering your overall inventory investment in class C production components and fastening supplies. Talk to us today and find out how you could be saving time and money.
Michelle is the Marketing Manager at Falcon Fastening Solutions, Inc. She is focused in communicating value to Falcon's customers, contacts and audiences by sharing the company's unique approach to fastening and class C production component supply.
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SCMEP and Falcon Fastening Solutions are partnering to bring you Value Engineering Fundamentals. A 50% discount is offered to qualified attendees. SC manufacturers please call 864-288-5687 to find out if you qualify. If you are located outside of SC, please call 1-800-438-0332. Related Posts:10 Signs of a Good VMI Program March 31, 2014 How to Calculate Overall Equipment Effectiveness (OEE) March 4, 2015 How Vendor Consolidation Can Improve Inventory Management April 30, 2015 Read more →