Vendor Managed Inventory
The Coriel VMI solution provides the reliable item identification required to run a remote stock location on a customer site.
Vendor-Managed Inventory (VMI) make perfect sense for both the vendor and the end-customer. For the vendor, they can ensure parts are with their customers instantly, easily hold customer-specific SKUs and significantly reduce the amount of physical space they need for storing stock. For the customer, they get instant access to parts as they need them and typically only pay for them once they have been consumed. However, the complexities around managing a remote stock location, accurately managing inventory levels, and ensuring the customer is invoiced reliably often mean that the significant benefits to be derived are overlooked.
The Coriel VMI solution provides the reliable item identification required for you to run a remote stock location on a customer site, with the same level of confidence as your own inventory locations.
Why would you want to implement Vendor-Managed Inventory?
Vendor-managed inventory provides you with significant benefits as listed below. From a reduction in transport costs and consequent emission reduction, better cash-flow management and you can virtually eliminate the need for stock taking exercises. Sounds great!
Significantly lowering central inventory requirements
A huge benefit of providing VMI services to your customers is the significant cost savings that can be realised through the utilisation of their on-site space rather than a large central inventory warehouse. In line with a reduction in space requirements, you will additionally see a reduction in the need for warehouse personnel and equipment – leading to lowered insurance and utility costs and less chance of any accidents across your sites.
Eliminating low volume, expensive transit costs
With modern online purchasing driving the expectation for instant, next-day delivery, businesses need to make huge investments in warehousing, people & processes in order to service thousands of packages leaving every day. Working with customers on a VMI basis allows you to create an initial large stockholding on their site, which is then topped up periodically based on their requirements. This makes the operation more manageable on an ongoing basis.
Creating long-term partnerships with your customers
The benefits of VMI to the end customer are invaluable, as they essentially have stockholding to hand 24/7 but without the need to manage the stock or hold the value on their books. Their ability to manage their operations based on this soon becomes critical, which puts suppliers who offer VMI in a great position to create long-term contractual relationships that benefit both parties – often over contract periods that span several years.
Where is this solution being used?
Why our customers choose us?
Without reliable technology controlling remote stock levels, VMI becomes impossible to implement. Coriel have a strong track record of identifying the location, movement and use of items of all sizes – providing instant, connected data that allows you to control a remote inventory location as reliably as if it were on-site.
Explore other relevant service areas below
Maintenance, Repair & Overhaul
Item level identification
Warranty & Aftercare
Production Line/WIP Visibility