Introduction to Vendor Managed Inventory (VMI)
This entry was posted on October 19, 2023
What is Vendor Managed Inventory?
With ecommerce and online sales continuing to rise over the last two decades, having a dedicated inventory strategy for contractor and distributor communications is key. An inventory strategy ensures you have a handle on a variety of factors, including cost, quantity control, data and analytics, and more!
So, what exactly is Vendor Managed Inventory (VMI)? At Mars Electric, our VMI service allows us to provide our contractor customers with complete inventory management solutions, meaning we’ll keep track of everything they need to keep their operations running smoothly. From ensuring inventory is fully stocked to larger project inventory management, where we take care of product restock scheduling and resupply, so contractors never have to worry about running out of what they need on the jobsite.
In this blog, we’ll be giving you an introduction to vendor managed inventory, giving you key insights into the many benefits of this service and how the team at Mars Electric utilizes VMI to ensure each of our customers are getting the exact product they need, when they need it.
What are the Benefits of Vendor Managed Inventory?
When it comes to collaboration and communication strategies in the 21st century, Vendor Managed Inventory is the key to ensuring businesses maintain consistency between distributor and contractor.
To give you a more thorough look at the benefits of VMI, we’ve broken down our five favorite benefits of Vendor Managed Inventory and how they help businesses create an efficient process for their sales.
Improved Relationships Between Contractors and Distributors
VMI is responsible for acting as the middle-man between distributors and contractors, providing an effective line of communication and ensuring that each process is running smoothly. Having a VMI in place improved relationships with distributors as consistent product supply can help contractors strengthen their relationship with current and prospective clients.
VMI is most notable for its aid in reducing costs for businesses – saving money on inventory planning, unnecessary ordering, excess storage space, and shipping. As processes become more streamlined and consistent, these excess costs can be used elsewhere to improve the business.
Ensures Correct Quantities
Incorporating VMI helps to ensure a business has the correct quantities of product available in their inventory. Contractors can use a VMI service to create a long-term, data-driven plan that improves quantity management, limiting excess or insufficient purchasing.
Limits Human Error
Inventory management can be a lengthy process for an individual – or even a team of people to manage on their own, which is why having a dedicated, data-driven service in place that accurately tracks product quantities, estimates future purchases, and keeps track of shipping is beneficial for limiting any human error that can occur.
At Mars Electric, we utilize VMI to provide our customers with convenient features that gives them the freedom to focus on what truly matters. Using VMI, we can help offload management, replenish, and deliver material to the jobsite, factory, or warehouse, saving our customers precious time and labor.
Tasks such as checking inventory, shopping, negotiating, and coordinating deliveries are all taken care of with our comprehensive VMI services. So, whether you’re at the warehouse or the jobsite, our services are available wherever you are, giving you the assurance you need to get the job done right.
Dedicated VMI Specialists
Using our fleet of specially designed VMI delivery trucks, our dedicated VMI specialists will work as an extension of your team, providing you with inventory management assistance multiple times a week. We’ll help with material layout and shelving, as well as assisting with any changes that occur with your VMI.
How it Works
Why Choose Mars Electric’s Vendor Managed Inventory?
Since 1952, the family-owned and operated team at Mars Electric have been working with technicians and contractors all across the Northeastern Ohio region, delivering the specialized services and high-quality products they need to get the job done right, the first time around.
We know our community and our community knows us. You can speak to any Mars Electric team member and get the exact information and product knowledge you’re looking for without the hassle of spending hours looking yourself.
To get started using our full-service Vendor Inventory Management service, please contact us today!