Optimize Your Supply Chain with Vendor-Managed Inventory Storage for Packaging

inventory storage for packagingIn recent years, supply chain management has been undergoing a digital transformation. With supply chain managers shifting their focus to emerging trends such as smart logistics, advanced analytics, and the implementation of AI and machine learning, the need for faster, more robust, and more flexible supply chains has never been greater. One investment that can have a major impact in this area is vendor-managed inventory storage for packaging.

Vendor-managed inventory storage for packaging, often referred to simply as vendor-managed inventory or VMI, can significantly enhance efficiency, save money and time, and support innovation and constant improvement for industries across the board.

Unleash Efficiency with Vendor-Managed Inventory Storage for Packaging

Vendor-managed inventory (VMI) is a supply chain model that relies on consistent collaboration between a business and their packaging supplier.

It is a system in which the business grants the packaging supplier access to their packaging inventory-related data, such as sales numbers, tracking data, forecast models, and any other relevant information.

In turn, your packaging supplier takes on the responsibility of managing and maintaining your packaging inventory. This includes shipping packaging and when needed and using data analytics to forecast changes in demand.

Done right, VMI has the power to ensure on-time deliveries for customers, reduce related costs, build stronger relationships with packaging suppliers, and innovate smarter packaging solutions with real-time data analytics.

Ensure On-Time Deliveries and Minimize Downtime

With consumers expecting better product availability, particularly with the rising popularity of omnichannel shopping, it’s imperative that companies are able to maintain a healthy and flexible supply chain that enables on-time deliveries and minimizes downtime.

Timely deliveries of customer orders are invaluable when it comes to creating a positive customer experience and improving brand loyalty. Brick-and-mortar stores also benefit from in-store product availability, as it enhances company reputation and profitability.

With vendor-managed inventory storage for packaging, businesses can ensure that packaging is available when and where it’s needed. As a result, VMI significantly reduces the risks of stockouts, excess inventory, and costly unplanned downtime due to the inability to move products.

Reduce Costs and Maximize Resources

Historically, packaging inventory management came with a laundry list of challenges such as:

  • Product loss and obsolescence due to mismanaged storage solutions
  • Increased warehousing space needs and associated costs
  • Excess material, resulting in higher carrying costs
  • Waste production due to expired or damaged materials

VMI addresses and in some cases removes these challenges. With vendor-managed inventory storage for packaging, businesses can implement more lean practices, allowing them to reduce carrying costs and free up resources like money and labor that can be used in other areas of the business.

Build Stronger Relationships with Vendor-Managed Inventory Storage for Packaging

Because VMI relies on collaboration and communication, it can foster a more positive relationship between businesses and their packaging suppliers. With data sharing, mutual trust, and shared goals, businesses can benefit from working with a VMI partner that has a deep understanding of their unique needs.

On top of that, a skilled VMI packaging partner can actively contribute to a business’s supply chain by making data-backed forecasts and improving responsiveness to changes in demand.

Working together, businesses and packaging suppliers can drive innovation, improve processes, and achieve mutual growth.

Get Data-Driven Insights for Smarter Packaging Strategies

Vendor-managed inventory storage for packaging doesn’t just rely on accurate data and information. It also provides invaluable insights into packaging trends, demand patterns, and performance metrics.

With this information, businesses are better equipped to make fast, informed decisions based on reliable metrics, resulting in more accurate forecasting and inventory optimization.

In doing so, VMI gives companies a competitive advantage by opening the door for a future-focused mindset and a continuous improvement business model that is laser-focused on meeting customer needs in real-time, without the need for an adjustment period.

Take Advantage of VMI at Axis Corrugated Container

Axis Corrugated Container has been a provider of custom packaging solutions for over 40 years. Beyond our corrugated and brown box packaging solutions, we offer robust VMI and JIT shipping services to all of our customers.

With our robust fleet of trucks and dependable logistics partners, we provide VMI, warehousing, and as-needed delivery for all standard and custom packaging. Whether you’re looking to optimize your supply chain, reduce time to market, or save on inventory carrying costs, Axis has the solutions to help.

Are you interested in adding the power of VMI to your supply chain? Reach out to our team of experts today to get started.