Optimizing Your Supply Chain with Vendor Managed Inventory and EOQ Strategies

In the fast-paced world of label manufacturing, efficiency and reliability are paramount. One strategy that has proven to enhance both is Vendor Managed Inventory (VMI). At Inovar Packaging Group, we leverage VMI to streamline operations, reduce costs, and improve customer satisfaction. Here’s how VMI can transform your label production process.

What is Vendor Managed Inventory (VMI)?

Vendor Managed Inventory (VMI) is a supply chain initiative where the supplier takes responsibility for managing the inventory levels of the customer’s products at the supplier’s location. This approach shifts the burden of inventory management from the customer to the supplier, ensuring optimal stock levels and seamless replenishment.

Benefits of Using VMI

Improved Inventory Accuracy: Inovar uses advanced data analytics to monitor inventory levels in real-time. This accuracy reduces the risk of stockouts or overstock situations, ensuring that you always have the right amount of materials on hand for your label production needs.

Reduced Operational Costs: By transferring inventory management responsibilities to Inovar, you can significantly reduce your operational costs. This includes savings on warehouse space, labor, and the resources needed to track and manage inventory.

Increased Focus on Core Activities: With Inovar handling inventory concerns, your team can focus on core business activities such as product development, marketing, and customer service. This can lead to improved innovation and growth for your company.

Better Supplier-Customer Relationships: VMI creates a partnership-based approach to inventory management. This strong relationship can lead to improved communication, better service levels, and a more responsive supply chain.

Inovar’s Custom VMI Programs

Inovar provides custom VMI programs for our clients which are broken down into two sections:

1. Helping Our Clients Determine EOQ (Economic Order Quantities):

• We review our customers’ ordering forecasts, on-hand inventory, and historical data to determine EOQ, helping to avoid obsolescence of labels.
• We analyze specification data to help achieve optimal production runs, gang runs together to reduce costs for our customers.
• Many of our customers agree it helps increase efficiencies with their ordering patterns.

2. Onsite VMI (Vendor Managed Inventory):

• We have several on-site warehouse storage locations at Inovar locations nationwide.
• We store labels and packaging products as needed for our clients and distribute nationally as required.
• Our cloud-based customer portal provides 24/7 visibility on inventory, production data, and allows customers to track orders internally during production and externally when shipping to their locations.

Advantages for High SKU and Multi-Facility Customers

Customers who have a high number of SKUs and multiple producing facilities nationwide benefit from these programs as we can direct ship to those locations, removing the need for the customer to transfer product between locations.

Vendor Managed Inventory is a powerful tool for companies looking to optimize their supply chain. By leveraging VMI, Inovar Packaging Group can help you achieve greater accuracy, reduced costs, and enhanced efficiency. Our custom VMI programs, tailored to meet specific industry needs and high SKU/multi-facility operations, ensure seamless inventory management and distribution.

Let us take the hassle out of inventory management so you can focus on what you do best – creating exceptional products. Contact us today to learn more about how our VMI solutions can benefit your business.