Keep your cash longer. That’s the primary advantage of VMI services from Kanban.
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.
VMI services: a case study
Taking advantage of Kanban’s VMI services, a Fortune 500 manufacturer of equipment and appliances stored motors, steel, nuts, bolts, and 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 if they are shipping just in time. VMI services help avoid this because inventory is close at hand.
- Reduce administrative time. Kanban manages suppliers and monitors VMI, freeing up your buyers to focus on more strategic work.
Suppliers can also benefit by positioning their inventory close to a key customer, as Kanban’s VMI services enable them to monitor inventory through our WMS.