WHAT IS A VENDOR MANAGED INVENTORY (VMI) PROGRAM?
A Vendor Managed Inventory (VMI) program is a supply chain management system in which portions of your procurement process are outsourced to a trusted supplier. An effectively managed VMI program improves your company’s bottom line by reducing accounting, freight, inventory, procurement, purchasing, receiving and sourcing costs. In addition, they reduce the space allocated for your on-hand inventory freeing it up for other uses. Parts are replenished more frequently at just in time quantities to support weekly usage. For years these programs have been successfully employed to manage a manufacturer’s demand for fastener components like nuts and bolts. Fasteners have been ideal parts for VMI programs because they are typically a small share of a company’s part spend but can be over half of the total parts purchased. As manufacturers continue to search for additional lean processes, more and more “class c” parts turn up as popular candidates for vendor managed inventory solutions.
Today’s VMI Programs have become much more than just fasteners. To fully maximize the benefits of a VMI solution, manufacturers are diversifying the product categories they outsource to be supplied on a managed inventory program. They will achieve the same ROI advantages as they have received from placing fasteners on a VMI program.
INDUSTRIAL SUPPLIERS WITH THE BEST VMI PROGRAMS
In the world of distribution, not all suppliers are created equal, and not every supplier is adequately equipped to fully integrate a company’s fastener and “class c” product demands. For a supplier to be a valued partner and trusted to manage this facet of your supply chain, they must be reliable and execute effective ordering logistics, be experienced working with a network of component suppliers and have your supply chain goals at the top of their management philosophies.
With a sourcing catalog that rivals the major national distributors, Class C Components is uniquely positioned to provide enterprise scale industrial product supply solutions and VMI programs for small to mid-sized OEMs, as well as sub-contract manufacturers. As an ISO 9001 certified company Class C’s quality management system has been proven and consistently tested to meet the needs of customers as well as regulatory requirements.
Class C Components was established to accommodate the sourcing requirements of small to mid-sized OEMs and sub-contract manufacturers because of the recurring service gap from the large-scale suppliers to accommodate this customer category. Frequently, small to mid-sized OEMs and sub-contract manufacturers were having to take a backseat to major manufacturers when it came to product alternatives, customer service and technical support resources.
Through customer centric decision making, Class C Components has grown to solidify partnerships with quality manufacturers like 3M, Brady, Diablo, Hellermann Tyton, Henkel Loctite, Lenox and OSG. Class C Components distributes well over 50K different SKUs and can ensure optimal stock levels on Abrasives | Adhesives | Cable Management | Cutting Tools | Electrical | Fasteners | Fittings | Janitorial | Material Handling | MRO | Protective Caps and Plugs | Safety | Shipping | Tapes | Tools and 3M all while keeping the customer, no matter the size, in the front seat.
ABOUT CLASS C COMPONENTS, INC.
A leader in industrial distribution and supply chain optimization, Class C Components provides customer focused, supply chain solutions to OEM’s and sub-contract manufacturers throughout the Midwestern United States. Utilizing cutting edge data collection technology, best in class history and usage reporting, Class C Components offers the fastest product scanning and order transmission in the market to customers on Vendor Managed Inventory (VMI) programs. A VMI program with Class C Components improves a company’s bottom line by reducing: accounting | freight | inventory | procurement | purchasing | receiving and sourcing costs.
With an On-Site Parts Kitting Department with Custom Packaging, and through partnerships with quality manufactures like 3M, Brady, Hellermann Tyton and Lenox, Class C Components ensures optimal stock levels on Abrasives | Adhesives | Cable Management | Cutting Tools | Electrical | Fasteners | Fittings | Janitorial | Material Handling | MRO | Protective Caps and Plugs | Safety | Shipping | Tapes | Tools and 3M.
As part of its three-pronged business model – Quality | Service | Versatility – Class C Components is committed to providing its customers an unrivaled experience in industrial distribution, through unmatched service and flexibility, “the personal touch.”
For more information, call 763.535.0400, or visit www.classccomponents.com.