Managing inventory across multiple contract manufacturers can be challenging. It requires careful tracking, delivery coordination, and consistent pricing. When critical products are spread across several suppliers, even routine replenishment can require more time and oversight. Vendor-managed inventory programs can support meeting these challenges.
A leading electrical equipment manufacturer was having difficulty tracking their inventory of sealing components across multiple contract manufacturers. The customer needed a more organized way to manage key SKUs, maintain product availability, and secure more consistent pricing.
The Challenge:
Managing Inventory Across Multiple Suppliers
The customer was having difficulty tracking inventory levels across multiple contract manufacturers. It also wanted to lower costs without risking access to critical sealing components.
Managing the products through several suppliers made purchasing and replenishment more complicated. The customer needed a dependable way to track critical SKUs, plan for annual usage, and coordinate deliveries.
Marco’s challenge was to provide the customer with a more organized inventory process that supported consistent pricing and product availability.
The Solution:
Vendor-Managed Inventory
Marco proposed centralizing the customer’s key sealing products through a vendor-managed inventory stocking program. The program was based on expected annual usage. The goal was to simplify inventory management around important SKUs while creating a more consistent purchasing and delivery process.
The vendor-managed inventory program provided organization for purchasing and stocking. It also reduced the complexity of coordinating key SKUs across multiple contract manufacturers.
Strategic Approach:
Stocking Support and Value-Added Services
The program began with one high-volume SKU based on the customer’s expected annual usage. It also included value-added services such as bagging, inventory-tracking assistance for specific SKUs, and quarterly hand delivery.
These services provided the customer with greater support for monitoring inventory and replenishing critical products. Scheduled deliveries also created a more predictable process and reduced the burden of coordinating orders across multiple suppliers.
The vendor-managed inventory program was evaluated and found to continue to meet the customer’s stocking and purchasing needs. After the initial program was established, the customer expanded it to include a second SKU. The original SKU was also renewed for another year.
This approach gave the customer a more organized way to manage important products. It also supported a stronger partnership between the two companies.
Proven Results:
Simplified Inventory Management
The vendor-managed inventory program has expanded from one key SKU to two. The customer now has a more organized way to manage critical sealing products across its network of contract manufacturers.
Planned stocking based on annual usage supports dependable product availability. Inventory-tracking assistance improves oversight of key SKUs, while scheduled deliveries simplify replenishment and reduce purchasing complexity.
Potentially, another high-volume SKU will be added, as expanding the program will improve inventory visibility across more critical sealing products. It would also support consistent pricing and reliable deliveries.
Customized Inventory Support for Critical Components
Marco Sealing Solutions provides inventory programs designed around each customer’s purchasing and stocking requirements. Marco combines vendor-managed inventory with discounted pricing and value-added services. This helps customers improve inventory visibility and maintain access to critical sealing components.
Contact Marco Sealing Solutions for expert support with vendor-managed inventory programs, other value-added services, and more.