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Automated VMI Grows Up

Lean Practices, Cost Savings Drive Trend

March 10, 2006

Vendor-Managed Inventory systems are gaining ground, as point-of-use automated dispensing machines offer more options (affordably) for mid-sized and large manufacturing customers. Distributors are finding new opportunities with VMI as larger customers explore ways to get leaner and smarter about indirect material management.

Vendor-Managed Inventory has long been a specialized tool with strong benefits in the right environment. A distributor assumes management of a customer's onsite inventory; the customer saves on internal labor costs as well as more effective control and resulting cost savings as the distributor brings its core competencies to bear.

While the core concept hasn't changed significantly, more sophisticated software and computer ...

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