{"id":9961,"date":"2022-09-13T02:30:07","date_gmt":"2022-09-13T01:30:07","guid":{"rendered":"https:\/\/international.optimas.com\/?p=9961"},"modified":"2025-09-04T12:57:16","modified_gmt":"2025-09-04T17:57:16","slug":"vmi-productivity-cost-reduction","status":"publish","type":"post","link":"https:\/\/optimas.com\/en_gb\/vmi-productivity-cost-reduction\/","title":{"rendered":"VMI: Productivity and Cost Reduction"},"content":{"rendered":"

In a time of increasing supply chain instability and rising inflation, it\u2019s crucial for businesses to reduce their spending and maximise efficiency. One way to do so is through the use of a <\/span>VMI (Vendor Managed Inventory)<\/span>. The last few years have seen an increase in the popularity of VMIs, as businesses seek to reduce their number of suppliers and instead opt for streamlined and cost-effective organisation.\u00a0<\/span>\u00a0<\/span><\/p>\n

As manufacturers ourselves, we\u2019re constantly looking for improvements to our production process, so we understand the position our partners are in.<\/span>\u00a0<\/span><\/p>\n

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What are the key benefits of Vendor Managed Inventory?\u00a0<\/strong><\/p>\n

A VMI ensures products are delivered to the right place at the right time through improved data visibility, resulting in improved productivity in addition to:<\/span>\u00a0<\/span><\/p>\n

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Cost Reduction\u00a0<\/strong><\/p>\n

Current financial instability means that businesses are having to reassess their outgoings, and there are numerous financial benefits of using a VMI. Firstly, it reduces manpower needed by your business. In a supply chain, the parts themselves make up only 15% of the cost, while the human resources required to select, manage and process those parts cost 85%.\u00a0<\/span>\u00a0<\/span><\/p>\n

In addition, using a VMI can simplify and reduce the cost of the ordering process, all while <\/span>reducing your TCO (Total Cost of Ownership)<\/span>, as the vendor assumes the cost and associated risk of managing your supply chain. Partnering with a single vendor also diminishes possible excess spending by collating your parts into a single,\u00a0 automated order.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Streamlined Production\u00a0<\/strong><\/p>\n

The current political climate is buckling global supply chains, so it\u2019s more important than ever for businesses to control their stock levels and avoid waste. VMIs use various advanced technologies to automate both simple and complex processes, removing costly and unnecessary steps.\u00a0<\/span>\u00a0<\/span><\/p>\n

A VMI service provider can also source products for you, from a diverse range of suppliers. Some experts suggest that the cost for a business to add in just ten extra suppliers every five years is <\/span>more than $1 million<\/span><\/a>, but a VMI handles that for you. Each part is then ordered, delivered, stored and replenished automatically, as and when you need it.<\/span>\u00a0<\/span><\/p>\n

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Types of VMIs at Optimas\u00a0<\/strong><\/p>\n

Optimas has numerous VMI solutions for your business. Our systems use the latest technology to automate inventory replenishment, ensuring productivity and saving you money.<\/span>\u00a0<\/span><\/p>\n

JIT Systems\u00a0<\/strong><\/p>\n