Address the Fear: Inventory Replenishment (Part 1 of 4)
As a manufacturer, does the thought of allowing someone else to manage your fastener inventory at no cost to you sound appealing? For some, this decision is a no-brainer. They think, “Why would I want to mess with buying fastener inventory? I’ve got more strategic business goals to focus on.” Or, are you like many others, who think making a switch to vendor-managed inventory (VMI) sounds like a source of anxiety?
At Hodell-Natco, we specialize in VMI services. That means we’re experts at saving our customers time and money, streamlining their processes, reducing their excess inventory and helping them avoid stock outs. And while these benefits are invaluable to our current customers, it’s important to acknowledge the concerns that others may have and address how they can be overcome.
Experience has shown us that the greatest challenge for our manufacturing customers to switching to a VMI system is fear of the unknown.
So, let’s discuss those fears and how Hodell-Natco handles them. Many manufacturing customers wonder, “What could happen on my plant floor if I put fastener replenishment into the hands of another party? What if they mess up?” Not everyone is comfortable relinquishing control of their inventory replenishment. A buyers’ success, for example, is often judged on (1) maintaining adequate inventory levels to avoid stock outs, and (2) achieving appropriate inventory turns. Therefore, buyers are often highly concerned about replenishing correct quantities. Why should they trust Hodell-Natco?
It’s not easy earning the trust of a manufacturer, but Hodell-Natco has done it time and time again.
How? Like all solid relationships— they take time and effort to nurture. We get to know our customers, their people, their plant, their parts, their processes, their goals. We gain a sound understanding of how our customer’s buyers replenish their inventory. Are there any unique replenishment requirements? Are there items with long lead times or that require special outside processing? Are their parts that must undergo critical quality testing? Then, we evaluate all the information we gather on current replenishment processes. Can we improve upon those? You bet! That’s our specialty! Our team is dedicated to sourcing and replenishing your fasteners in the most efficient and cost-effective way possible. Our priority is to help you achieve your goals.
Want to learn more? Call us. 866.330.3997