Having the right amount of inventory is a challenge for many businesses. Excess inventory can be very expensive because products can be damaged and stolen while in storage. Yet, running out of inventory can be just as costly, losing potential sales can hurt your revenues and cause dissatisfaction for your customers. An easy solution to this problem is enrolling in our vendor managed inventory (VMI) service. VMI relieves you from the stress of inventory stock dilemmas, while maximizing profits. A huge reason Wal-Mart has become so successful is because of the use of VMI services for major vendors. Some of the benefits of using VMI include:
Less Risk to Products/Sales
Holding a surplus of products can be dangerous and risky since there is high potential for theft in a warehouse. Products are also at risk to be damaged and tampered with while in holding. Excess inventory being stored is expensive and not an efficient use of your business’s budget. On the other hand, having a shortage of inventory can cause missed sales opportunities and profits. Having a VMI system in place ensures that you have just the right amount of inventory to avoid a surplus, yet consistently having enough.
Better Supply Chain
When using a VMI system, your business’s supply chain process becomes more stable and fosters better partnerships that benefits participating parties. When companies pool their resources by using advanced forecasting, innovative solutions are created to ensure everyone is in the loop of what needs to be produced, shipped, and shelved for sales. In traditional inventory management systems, when problems occur, it has a ripple effect on the entire supply chain. This is usually costly to all parties involved and creates tension between partners.
Happier Customers
The most important thing to ensure a successful business is satisfied customers. Customers will know your company is reliable and dependable when your inventory is fully stocked and ready to purchase at a moments notice. The customer will feel as though they have a close relationship with your business, which entails loyalty and repeat purchases.
Having a trustworthy VMI system in place is the wave of the future. It is beneficial to everyone in your supply chain and most importantly, your customers. Contact us today about our dependable VMI services and find out how much you can save by making the switch.
To learn more, don’t hesitate to contact us.