Why Use Consignment Inventory or Vendor-Managed Inventory Systems?

Do you currently use consignment inventory or vendor-managed inventory systems? If the answer is yes, then you already know about the plethora of benefits that come from these managed inventory systems. If not, then these systems are something you should familiarize yourself with. Consignment inventory and vendor-managed inventory programs assist companies in controlling their inventory costs and maintaining the lean manufacturing aspect of the company.
Not only do these programs provide convenience on the business end, but they greatly improve manufacturing and distribution processes. Here are top five reasons why you should enlist a managed inventory program for your business:

  1. Elimination of inventory costs.
  2. Allocation of dollars towards your inventory. (This way, you don’t have extra money tied up in the inventory).
  3. Detailed reporting for consigned products.
  4. Summary (or once a month) billing.
  5. Guaranteed product fulfillment (You will never run out of products because these programs track the movement of your inventory, in terms of production and distribution).

How do we know so much about these management business models? We consider ourselves masters at consignment and vendor managed inventory. Aside from our various products, we also offer our customers inventory management services, which has proven especially beneficial to our finishing and grinding clients. There’s no reason not to enlist help in keeping your production in line—consignment and vendor managed inventories are necessary in keeping your business running successfully.

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