Save Time and Money with Vendor Managed Inventory
Vendor managed inventory can save you time and money, letting you redistribute those precious materials into other areas of your business. When you use this process for your product labels, you’ll be sure never to run out of stock, keeping your business running smoothly.
Vendor managed inventory is a supply chain agreement in which the buyer shares specific data, allowing the vendor to maintain an agreed-upon amount of stock. The buyer shares inventory, demand data, and delivery parameters with the supplier. Essentially, the vendor reorders and ships products to the buyer automatically. To be sure, the buyer is still responsible for providing accurate inventory data, but the vendor manages a more significant portion of the supply chain, from sourcing to identifying trends to delivery.
Benefits of Vendor Managed Inventory for Product Labels
Vendor managed inventory systems eliminate roadblocks and align supplier and customer inventory requirements. As such, when you employ these systems, you reap many benefits.
Lower Inventory Costs and Decreased Lead Times
A vendor managed inventory’s ideal goal is to keep inventory levels low and only place orders as needed. The supplier takes control of the replenishment duties, allowing the supplier to dynamically adjust stock in response to customer demand. This system improves supply chain responsiveness to seasonal changes, special promotions, and new initiatives. Retailers who use this system need dramatically less stock at their warehouses because suppliers have more visibility around the goods, resulting in lower carrying costs. Additionally, by ironing out the adverse effects of demand variability, suppliers can coordinate better lead times. This results in lower inventory carrying costs and reduced disruptions from stock-outs.
Reduced Risk of Over- or Under-Purchasing
Too much inventory can be costly and take up room on your shelves, while insufficient stock can cost you sales and delay customer orders. Without a vendor managed inventory system, you would have to predict your sales and order products based on those projections. This results in an increased risk of buying too much or too little. As mentioned above, with a vendor managed system, suppliers can take control of inventory and procure products in a way that matches customer demand.
When you work with one partner to handle your inventory, you don’t have to deal with multiple vendors. This removes unnecessary back and forth, and allows for a predictable and reliable inventory schedule.
Outsourcing a Time-Consuming Process
When you partner with a third-party company to manage your label inventory, you outsource a hugely time-consuming process. People who know labels oversee your inventory; they know what it takes to source the materials, format, print, and package them for shipping. They’re also responsible for delivering the labels to where they need to be, taking a huge burden off your to-do list.
Minimized Human Error
Vendor managed inventory systems are usually integrated into inventory management software, which automatically updates the supplier on retailer’s inventory levels. The software can also automatically create sales reports and analytics. Thus, the software usage significantly reduces employee workloads and human error.
Work with a Trusted Partner to Manage Your Product Labels
Using a vendor managed inventory system for your product labels takes a huge stressor off your plate, while lowering costs and reducing lead times. When you work with a third party to manage your labels, you’ll know you have the correct amount of quality labels when you need them.
DRG Technologies can help create a quality, reliable vendor managed inventory system for your product labels. Additionally, we can support your instruction sheet, manual, reusable plastic container, ribbon, and printer needs.
Over the last 30 years, we’ve continuously refined our process through collaboration with our suppliers, employees, partner manufacturers, and maquiladoras. We analyze your forecast, consult on the proper inventory levels, and manage your demands through clear communication and planning with your organization. Our proven process reduces overall supply chain costs, consolidates parts, materials, and vendors, and localizes inventory, customer service, and decision making.
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