Right Sizing the VMI Bins, or Increased Inventory Turns

Problem:

Our partner was consistently dealing with dead inventory that was turning slowly, if at all. Along with the obvious problem of using time and resources on product that wasn’t selling, the storage space it required was then unable to be used on inventory with more sales potential.

Solution:

Stock’d Supply evaluated the historical usage of each SKU (stock keeping unit) for one of our valued VMI customers and blended it with their future forecast to increase the number of inventory turns by 30% per year. We were able to accomplish this by lowering the customer’s stock level on slower moving items and weekly monitoring the inventory level of their high volume items to prevent stock out events. This is a service we refer to as “right sizing the VMI bins”. By increasing the number of inventory turns per year, Stock’d Supply provided a value added service which resulted in lower inventory levels (lean supply) and cost savings to the customer.

Results:

Probably need a specific case and/or statistics for this. Otherwise we should keep it at just problem/solution without this section.