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5 VMI Benefits That Will Transform Your Operations

ByGriffin Buckley

Excess stock is a major cost to your business with a direct and negative impact on your bottom line. Reducing inventory levels is one of the quickest solutions to limit your need for working capital.

VMI (Vendor Managed Inventory) is a proven approach to streamlining inventory management and order fulfillment that improves collaboration between suppliers and their distribution partners by aligning business objectives and optimizing operations for all participants(1).

Ways a formalized Inventory Management solution can help your operation:

1.  Improved Accuracy

Mistakes on orders are costly to your business in terms of time and capital. With inventory management, your inventory levels are managed by a VMI specialist who keeps track of what you have on-hand, what has been used, and what needs to be ordered. With a standardized VMI program, ordering high-use parts is a breeze.

2.  Reduced Downtime

You should always have access to the parts you need when you need them to resolve issues and complete jobs on time, with little to no downtime.

3.  Cost Savings

Inventory Management tracks customer usage and adjusts inventory levels to meet operation needs. The distributor manages stock levels using minimum and maximum levels so you can reduce the cost of unused inventory.

4.  Stockroom Organization

Most formal inventory management programs have a standardized organization process, keeping your parts visible and labeled for easy access. This also helps VMI specialists reorder correct parts, receive them, and put them away for your team to use.

5.  Product Standardization

Reduce SKUs and manufacturer lines ordered for a more streamlined process to your operations.

Talk to a VMI Specialist today!

1 TruCommerce Inc. (2020). What is Vendor Managed Inventory and Collaborative Replenishment?  

Standard Electric Supply Co. is a family-owned distributor, built on delivering above standard service. For over 100 years, Standard Electric has been the best at what they do; delivering top-quality products, outstanding service, and providing value-added services to customers across the Midwest. Visit to see how Standard Electric can become the solution to your needs.

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