We build an aggressive, proactive and flexible inventory plan for every VMI agreement to reduce costs, inventory and overhead while greatly increasing turns and availability.
Data-driven Approach that Reduces Costs and Procurement Time
As an extension of your team, we establish a line-by-line program to optimize your inventory and recommend where stocking levels need to be adjusted, reduced or eliminated.
We promote turns-driven order quantity and a technique for establishing safety stocks based on frequency of issues. We will thoroughly analyze your stock and usage. Then we collaborate with you to streamline your inventory and make sure you have the right amount of parts at the right time.
We will identify and eliminate duplicate items. We will also identify slow moving, dead stock, over stock inventories and opportunities for standardization. Then, we will recommend new order points and order quantities in line with your actual usage for each line item. We will do all this without reducing service to any user.
Custom Implementation that Reduces Aggravation
To ensure your partnership with us is a success, we have a basic implementation project plan containing key tasks that ensure a smooth transition. We review it with you and modify it to meet your specific needs.
To avoid issues that can arise at the beginning of a long-term supply relationship, we are confident that you’ll agree with us on the following criteria:
- Alignment of goals between client and supplier
- Broad focus on all aspects of operations
- Strong, open communication
- Sufficient emphasis and investment in implementation planning and execution
- Corporate champions from both the client and supplier to spearhead the effort
Stratification that Improves Financial Return
Inventory stratification is a process by which we analyze your VMI inventory for the purpose of identifying its financial performance. Through this process, we provide a wide spectrum of recommendations that will improve your inventory performance and increase your financial return on VMI commodity items.
How does inventory stratification work?
We assign an inventory item a code of A, B, C, or D based on its usage. Typically…
- “A” items represent products that account for 80% of all items total usage
- “B” represents 15% of all items total usage
- “C” represents 5% of all items total usage
- “D” represents a consumable with no issues for at least a 12-month period
Of course, we can adjust the associated percentages based on your inventory performance objectives.
Saving You Floor Space
We can warehouse your products so that they are safe and secure until you need them.
We are always looking to improve your VMI program, and we have the systems, people, experience and inventory to support your changing needs.