Vendor-managed inventory (VMI) — a supply chain process that streamlines inventory procedures by putting the vendor or supplier in charge of managing and replenishing a manufacturer’s inventory — can be hugely useful for both the companies employing these systems and their clients.
Here at Assembly Fasteners, Inc. (AFI), we make use of a number of specialized VMI programs in order to provide added value to our customers while reducing our overall costs. Our newest VMI system — Assembly Virtual Inventory System (AVIS) — uses SmartBins to automatically track the number of parts in a bin and determine when part refills are needed. AVIS then collects and stores this data in a cloud system to generate automatic stock orders.
With VMI systems like AVIS, we’re able to supply our customers with high-quality products while requiring fewer transactions and allowing for lower purchasing, receiving, and quality costs. Below are five great reasons to employ — or work with a company that employs — VMI systems.