When it comes to inventory, there is a fine line between being adequately stocked, but not overstocked or running out of products. To reduce business costs and overflow of products, it’s important to properly manage your inventory to save time and money. That’s where Stock Optimization Programs (SOP) and Vendor Managed Inventory (VMI) can help! We can keep your bins stocked, which will reduce costs and facilitate process efficiencies, thereby managing working capital and creating a streamlined plan for success.
We’ve discussed our French Gerleman SOP program in a past post, so you know the benefits to these programs. How do you get started and what does it entail? Watch the video below in which Sean Nolan, VP of Market Development, and Chris Fine, Director of Marketing, discuss the process and what you need to know.
What’s involved in setting up a VMI program?
The setup process might sound complicated, but it’s pretty straightforward. The most important thing is data cleaning. This involves us taking a look at the current information customers have on hand. This might be looking at reporting or speaking with them about what kinds of things they are currently keeping in stock. The thing we hear a lot is that our customers don’t have their arms around this information, and that’s okay! That’s where we come in and can help to create a plan.
How does a customer get started in setting up a program like this?
The first step would be to call your French Gerleman Account Manager to let them know you’re interested. From there, we will bring in a team of folks that will help you work through:
- What do you currently have in stock today?
- What do you NEED to have in stock today?
- What’s moves quickly, what is slow moving and what is critical.
- What items are dead, what items do you not really need?
We will work with our customers to make sure that we have the right level of inventory on hand, what items we need to have backed up at French Gerleman, and what items we can eliminate altogether. This is something we will discuss together, so don’t feel overwhelmed!
Once we get that completed and items determined, we have created a stock level optimization plan that we have and can use/implement moving forward. This of course can change as business progresses, so it is in no way set in stone, but the plan is put together and we will work that plan together as we move forward.
We focus on many categories with our SOP program, including:
- Power transmission
- Lube and spray
If you’re interested in setting up a Vendor Managed Inventory program, contact your French Gerleman Account Manager today! We look forward to working with you to create a plan to keep your company organized, save you time and money and of course, keep your inventory organized!