Project Description


The client had a pre-existing delivery service in place that was referred to as “VMI”, but the program was not a true VMI. The incumbent vendor was simply doing delivery only and calling it VMI.

The client progressively began noticing red-flags with its production component inventory. Full and partial cardboard boxes of inventory items slowly accumulated, first at central storage and then in scattered piles throughout multiple production areas.

The client requested consumption and replenishment data from the incumbent supplier multiple times, which the supplier failed to provide in contradiction of their agreement.

To clarify its suspicions, the client sought the Falcon team’s expertise on VMI.

After Falcon reviewed the agreement and confirmed that the client’s expectations of the incumbent VMI supplier were well founded, the client requested data from the supplier one last time. The supplier eventually provided limited records, still missing key requested data points.

The client determined that the incumbent was not adhering to contractually defined minimum and maximum bin quantities, and was not managing replenishment data according to the VMI contract.

The incumbent was overstocking inventory during deliveries, even stocking items that weren’t needed.

Over time, overstocking devoured precious floor space, inhibiting efficient production floor navigation.


After failing to adequately service the client or accommodate requests for program data, the client asked Falcon to be it’s new VMI provider.

Falcon immediately took inventory and began servicing the account on a regular cadence of twice a week while managing exceptions during the implementation period.


  • Consolidated part numbers (eliminated redundant parts).
  • Immediately reduced direct acquisition cost (price) by ~70%.
  • Falcon proactively provided an additional part substitution recommendation reducing material cost of the related item by 57.14%.
  • Consolidated invoicing: Reduced related invoicing time by 94.32%.
  • Expedited transition: initial 12 week implementation plan successfully completed in 3 weeks as former supplier suddenly stopped servicing the client.
  • Falcon was able to provide more replenishment data in the first 2 months of serving the client than the incumbent was able to provide over 4 years.
  • Testimonials: “Falcon continues to impress us with getting what we need, when we need it, and the fees are more than acceptable as well.
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Reliable Stock™ Lean VMI Solutions by Falcon

Falcon’s Reliable Stock™ lean VMI program delivers 100% production uptime efficiency, while lowering your overall inventory investment in class C production components and fastening supplies. Find Your Solution Today!
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