Switching to VMI Got You Worried? (Part 2 of 4)
Address the Fear: Managing Your Inventory Levels
To continue the discussion of the fears associated with switching to vendor-manager inventory, it’s important to address a manufacturer’s loss of control over inventory turnover levels. This can seriously deter the most savvy OEM supply chain and purchasing professionals from considering the idea of a well-managed VMI program. Why? Because the risks associated with mismanaged inventory levels are too great to overlook!
It’s widely accepted that meticulous inventory management is no small feat. So many variables can interrupt a well-forecasted inventory buying plan. What if production levels unexpectedly ramp up or down, or alterations are needed on production lines? What about seasonality? What if your fasteners require engineering changes due to product redesign? What if a new model is brought into production? These are all valid concerns.
So why let an outside company assume the critical responsibility of managing inventory levels?
Because that exact responsibility is Hodell-Natco’s expertise! How do we do it? By becoming so acutely in tune with your operations, our team can flex with yours as needed. We proactively stay on top of your operations by (1) regularly communicating with your buying and plant personnel and (2) integrating your inventory forecasting data into our inventory management system. These measures allow us to react quickly and adeptly to production that ramps up or down. We can also help with unforeseen part substitutions or modifications. Our engineers and product experts are here to help you determine the best fasteners for your application, always ensuring that your production line has the right parts at the right time.
We understand that everyone’s idea of optimal inventory levels can differ. Some manufacturers will say to, “Always keep our bins full!” as a method to avoid stock outs. Yet, others specifically request monthly inventory turnover. And in some production facilities there may even be requirements for daily inventory turnover.
The right level of inventory, is whatever it takes to help you achieve your inventory goals.
Periodically, Hodell-Natco reviews the replenishment data that we collect to make adjustments to your inventory levels and fine tune inventory turns. We’re all about improving your efficiencies — so we’ll even analyze your bin layout and suggest bin locations that could more efficiently serve your production lines. You can rest assured that whatever inventory goals or turnover demands you have — Hodell-Natco is built to help you achieve them.