How Vendor Managed Inventory (VMI) Reduces Supply Chain Waste-5-of-7-Over-Production

Over-production waste is defined making things or performing actions that are not required now.

How VMI Services Reduce Over-Production Waste
VMI can only work for the components that are part of the program. For example, if an OEM’s production model is to build up safety stock for anticipated sales growth or to keep their production floor running and employees working…well, a VMI partner isn’t going to dictate or redefine those decisions. What it will do is guarantee the quantity of stock available to keep up with usage as agreed to by the customer and supplier. Once this agreement is understood, stock is only replenished upon use.

Production needs change, which is why communication is key to a successful VMI program. VMI is an ideal way for an OEM to remain nimble while mitigating risk in their supply chain.

The time that Purchasing gains with VMI services can be used to operate on a more strategic basis, opening more dialogue with sales and marketing on any anticipated contract wins or marketing promotions, etc. that could impact production. The more insight gained within the organization, the more effective and responsive production can become, ensuring higher customer satisfaction as it relates to on-time delivery.

Dedicated Account Management
High performing VMI programs utilize a dedicated account manager to learn the nuances of an OEM’s operations and act as a single point of contact to minimize communication issues. Falcon takes it a step further by designating a Client Advocate for each client. In addition to the common functions performed by a typical Account Manager, Falcon’s Client Advocates (CAs) handle sourcing, quoting, and inventory management, empowering them to make fast, and informed decisions.

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Reliable Stock™ Lean VMI Solutions by Falcon

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. Download the Reliable Stock™ brochure today to find out how you could be saving time and money.
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2018-12-19T10:04:11-04:00November 26th, 2018|Categories: Inventory Management, Vendor Managed Inventory (VMI)|

About the Author:

Aaron is the Marketing Director at Falcon Fastening Solutions, Inc. He is focused on sharing Falcon's unique approach to fastening and class C production component supply chain solutions with equipment manufacturers.

Fasteners and Class C Component Supply

Falcon supplies fasteners and inventory management services to manufacturers in North and South Carolina, Kentucky, and the surrounding areas.

Charlotte Office

10715 John Price Road
Charlotte, NC 28273

Phone: 800.438.0332

Mobile: 704.588.4740

Mailing Address

P.O. Box 7429 | Charlotte, NC 28241-7429

Phone: 704.588.4740

Fax: 704.588.5753

Kentucky Office

11536 Commonwealth Drive
Louisville, KY 40299

Phone: 502.266.6292

Fax: 502.526.5567