Express 3PL's Vendor Managed Inventory solution provides a collaborative approach between the supplier and the manufacturer to optimise the inventory management and fulfillment process. With this process, you are able to sync data, processes, and business objectives into one solution that optimises the supply chain for all stakeholders.

Running out of stock when you need it, whether it is a component required on your factory assembly line or a product that your customer requests, can lead to poor customer satisfaction, delays in manufacturing and increased costs.

Utilizing a Vendor Managed Inventory solution removes the responsibility from the manufacturer to maintaining inventory levels, managing lead times, and generating purchase orders. This is now under the control of the logistics provider, to maintain the inventory levels, adjust inventory based on demand while also identifying gaps in the supply chain. Developing a collaborative solution provides each stakeholder with increased transparency and visibility into the operation, creating a streamlined data source to forecast more accurately and efficiently. Providing transparent data for all stakeholders reduces the chances of stock-outs occurring, leading to increased profitability and throughput for the manufacturer.

By switching the purchase order responsibility from the manufacturer to the logistics provider, you are able to optimise and develop a more accurate solution by combining and analysing the data from both the manufacturer and supplier. This allows the customer to realise lower purchasing costs due to them no longer having to spend nonvalue added time analysing data, developing, and sending purchase orders to the supplier; this is now the responsibility of the Logistics provider.

In addition, to reduce costs throughout the purchasing process, customers are also able to realise warehouse cost savings by reducing the amount of inventory on-hand and optimising space utilisation throughout the warehouse.

Designing and implementing an optimised Vendor Managed Inventory solution is beneficial to all elements of the supply chain from supplier to end customer, ensuring each stakeholder receives the correct product when they need it. Improving product availability creates a more streamlined supply chain and increasing profitability.