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The Hours VMI Gives Back to Your Team

Counting, ordering, chasing, and receiving packaging eats hours your team doesn’t have. Processing one purchase order costs $14 to more than $54, by APQC benchmarks. VMI moves the counting and ordering to your supplier, so your people go back to running the plant.

 

You can’t hire enough people for the floor. Yet someone on your team spends Tuesday morning counting tape.

Where Packaging Time Goes

  • Walking the storage area and tallying every item.
  • Writing the order, getting approval, and sending it.
  • Calling about late deliveries and backorders.
  • Checking deliveries against orders and fixing mistakes.
  • Matching invoices to orders, one by one.

 

Every purchase order costs $14 to more than $54 to process, according to APQC procurement benchmarks. Ten packaging orders a month at $35 each is $4,200 a year in paperwork alone.

What VMI Takes off your Plate

  1. Your supplier counts. On a weekly, every-two-weeks, or monthly schedule.
  2. Your supplier orders. Restocks to the levels you set, with no order from you.
  3. Your supplier watches usage. Flags jumps before they turn into a stockout.
  4. You place fewer orders. Scheduled restocks replace a stack of small, rushed orders.

Run the Numbers

  1. Hours per week your team spends counting, ordering, chasing, and receiving packaging.
  2. Multiply by your loaded hourly rate and by 52.
  3. Add your purchase orders per year x your cost per order.

 

Four hours a week at $30 an hour is $6,240 a year. Add 120 orders at $35 each and the total passes $10,000.

Ready to Start?

Our VMI customers tell us the program saves them a hire. Send us your packaging list and order history, and we’ll estimate the hours you get back.

S&S Incorporated · Packaging made easy since 1965 21300 St. Clair Avenue, Cleveland, OH 44117 216-383-1880 · info@sspkg.com · www.sspackaging.com Monday–Friday, 7:00 AM–3:30 PM