When it comes to packaging supplies, companies have multiple options...
Today’s post has been written by Ryan Melowic Vice President of Customer Services at SafeSourcing.
When it comes to packaging supplies, companies have multiple options for managing their inventory. Below you will see the different options and what each model entails.
Vendor Managed Inventory (VMI) – Vendor optimizes your company’s inventory by observing usage, floor stock and lead-time to define what model (dynamic historical model, min-max model, input forecasted model or combination of all three) will work best for your company. The vendor may also beresponsible for inventorying your packaging requirements and warehousing it.
Just in Time (JIT) – This program is designed for company’s who require numerous transactions on a regular basis and make best use of available floor space. The vendor conducts a detailed examination of the company’s packaging needs to create a solution that is custom.
Contract Packaging and Fulfillment – This program allows the customer to focus on their core competency by placing the full packaging function in the hands of packaging experts. Contract packaging creates fixed item costs for packaging regardless of production volume.
By utilizing any of the three types of programs, companies gain the following advantages.
- Freed up cash flow
- Maximized workspace for other core capabilities.
For more information on how we can help you with your packaging needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.
We look forward to your comments.