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Batch and Store Products for Future Runs through a VMI Program

Have you heard of VMI? This is a forward thinking trend that’s a change from ‘manufacturing as usual.’ VMI stands for Vendor Managed Inventory which is a streamlined way for businesses to manage inventory and fulfill orders. Here at STAM we take every opportunity to offer our customers the easiest way to order and receive the parts they need. With VMI, that process is made even easier.

It works in this way: Instead of placing an order for a run of custom tubing, a customer orders a batch. The finished products are delivered to the customer’s facility if they have room or the products can be warehoused at our facility until they are needed. A RFID tag is provided for each product. When the product is used the tag is SCANNED and an invoice is issued.  An advanced version automatically creates a payable in the customer’s AP system. An alternative procedure would be for a representative to visit the plant throughout the year to count inventory and ensure that it matches our records.

What are the benefits of a VMI program? The first are the cost savings. The cost to make 1 item is disproportionally higher compared to making 10. By making a batch of a custom tubing solution the startup costs are eliminated when that part is needed again.

VMI programs also save time. For example, when an order is placed with a short deadline, having the right sized cut tubing on hand removes the time lag and ripple effect of placing a rush order though a vendor. Work can begin immediately when there is a sudden demand.

Lastly, VMI offers more freedom and peace of mind. If there is a spike in demand and the inventory is readily available it reduces the stress and workload of gets rid of the stress of contacting vendors. It eliminates the hassles associated with trying to rush order products and allows production to run smoothly.

Once a VMI program is up and running the rewards are great. It allows us to work with each customer to ensure that they have the products they need when they need them.

Are you interested in STAM’s VMI program? Give us a call to learn more!

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