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.
Thanks for watching!