Keep your cash longer.  That’s the primary advantage of VMI services from Kanban. For your Mid-Atlantic manufacturing plant, Kanban has the warehouse space, the systems and the expertise to help you implement a vendor managed inventory program with your suppliers. We can even work with these suppliers to ease the transition to a VMI model.

Vendor Managed Inventory (VMI): a case study

Taking advantage of Kanban’s VMI services, a Fortune 500 manufacturer of equipment and appliances stored motors, steel, nuts and bolts, as well as packaging materials, in Kanban’s warehouse very close to its factory. Inventory remained off the manufacturer’s books until parts were ordered. The company instructed suppliers where to store inventory and the minimum levels required.

Benefits of VMI services for manufacturers

  • Preserve capital. You pay suppliers after inventory is shipped to your plant.
  • Reduce risk. If suppliers are shipping from another state, region or country, weather-driven and other delays can result in lack of supply and a line-down situation.
  • Reduce administrative time. Kanban manages suppliers and monitors vendor managed inventory, freeing up your buyers to focus on more strategic work.

Suppliers can also benefit by positioning their inventory close to a key customer. Kanban’s VMI services make it easy for suppliers to monitor their inventory positions with secure access to our web-based WMS system.


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Interested in VMI services?

Contact us to explore the potential of a vendor managed inventory model for your Mid-Atlantic manufacturing plant.