VMI for Smart Supply Chains: A Blog Series

Benefits of Vendor-Managed Inventory for Your Large Facility

Frequently Asked Questions About VMI Services

If you’re new to vendor-managed inventory programs, you may be wondering if ours is for you. Maybe you have questions about the supply tracking process, or you’re curious about savings incentives and bulk pricing. Below, we clarify some of PackageIt’s most frequently asked questions about our popular VMI program. Don’t see your question? No problem! When you fill out this brief contact form, our VMI team will provide all the answers you need.

Question #1: Who is a potential candidate for PackageIt’s vendor-managed inventory program?

VMI programs aren’t ideal for every business or customer, but many clients benefit from inventory management for Seattle packaging supplies. For example, our VMI program is valuable for large, high-volume companies, businesses experiencing rapid growth, and facilities wishing to free up internal employees by outsourcing inventory management.

PackageIt VMI clients run the industry gamut, from e-commerce and industrial manufacturing to food service and B2B sales. “Seattle is also home to a variety of aerospace companies, and our VMI specialists work with aerospace manufacturers that provide components to major companies like Boeing, AeroTEC and others,” says Assistant VMI Operations Specialist Hanna Looney.

To identify vendor-managed inventory candidates and determine program options, PackageIt’s VMI team considers questions like these:

• Big picture goals:
• What are the goals of outsourcing supply management?
• What week-to-week packaging and warehouse supplies are required?

• Logistics:
• Which supplies does the client have trouble accessing due to production slowdowns or shipping issues?  Which custom packaging supplies do they use most, and which obsolete supplies are taking up warehouse space?
• How often can a VMI specialist visit the facility?
• What delivery or transport method is most appropriate for the client’s goods?

Question #2: Who is the “ideal” VMI program candidate?

According to Operations Manager Bill Gunning, PackageIt’s “ideal” VMI customer is one who:

• Is concerned about improving efficiencies
• Enjoys partnering with a solutions-oriented provider that (1) understands the marketplace and (2) provides options to fit the client’s unique business flow
• Has difficulty forecasting frequently changing supply needs
• Lacks confidence in setting up fulfillment and replenishment systems
• Needs assurance that supplies will be on hand when needed
• Wishes to free up internal staff for increased throughput and core competency focus

Learn whether you qualify for PackageIt’s VMI program by contacting our logistics experts. We’ll evaluate your supply management objectives, order volume and inventory turnover to determine how we can help!

Question #3: What is vendor-managed inventory, and how does the program work?

PackageIt’s VMI program is a collaborative partnership where we:

• Visit a business’ multi- or single-site facility on a routine basis
• Get to know product lines & business workflows
• Oversee supply chain management & inventory replenishment
• Source essential supplies & negotiate competitive pricing
• Manage lead times & forecast delivery timelines
• Identify supply-usage & inventory trends
• Maintain inventory visibility & transparency
• Avert costly supply surpluses
• Free internal employees from inventory management for redeployment in core competency areas (marketing, fulfillment, manufacturing processes, etc.)

Question #4: What are some expected benefits of a customized VMI strategy?

The advantages of a vendor-managed inventory program are far-reaching, and they include:

• Reclaimed warehouse space. Your PackageIt VMI specialist ensures you don’t have obsolete supplies taking up space in-house or in storage facilities.
• No more scrambling. There’s nothing worse than running to the office supply store at the last minute after running out of boxes, void fill or warehouse supplies. We help you identify the root of reoccurring shortages while forecasting future needs.
• Accurate reporting & updated data insights. Request information from your VMI specialist about inventory trends, usage patterns or cost savings.
• Improved sales. Over time, your PackageIt representative develops a deep understanding of your business objectives and product lines. As the partnership flourishes, you’ll have an improved response to emerging market trends and revenue growth strategies.
• Improved preparation & responsiveness. Thanks to customized VMI strategies, PackageIt clients are more prepared to offer special discounts and promotions, manage seasonal inventory shifts, adapt to dynamic product demands and implement new product rollouts.
• Reductions in inventory loss due to spoilage, theft or damage. Obsolete or surplus supplies cost you money, time and space. PackageIt VMI solutions help you minimize goods damaged during shipment, reduce the potential for dissatisfied customers, and avert costly reputation damage.
• Cutting-edge innovation. It’s easy to think “inside the box” and order the same-old things when managing your own inventory. PackageIt’s VMI specialists stay on top of breakthrough technology, giving you access to the most innovative shipping materials and warehouse supplies on the market.

Question #5: What do customers appreciate about PackageIt’s vendor-managed inventory program?

Question #6: What type of supplies and products are available through PackageIt’s VMI program?

Your PackageIt representative can order virtually anything — for every zone of your facility. Choose from products for the warehouse, factory floor, delivery vehicles, front office, customer-facing settings and off-site meetings. We are your one-stop supply partner, eliminating the need to juggle multiple third-party vendors. PackageIt’s exhaustive range of VMI products and custom packaging supplies includes, but is not limited to: