What Is Vendor Managed Inventory? How VMI Works for Packaging Supplies

1. Set the list. You and your supplier list every packaging item your plant uses.
2. Set the levels. Each item gets a minimum and a maximum based on your usage.
3. Set the schedule. Your supplier counts weekly, every two weeks, or monthly, depending on how fast you use each item.
4. Count and restock. Your supplier counts your shelf and orders what’s needed to bring each item back to its maximum.
5. Levels get adjusted as your volume changes.

• Corrugated boxes, stock and custom
• Tape, labels, and stretch film
• Protective packaging and void fill
• Strapping and facility supplies
• Janitorial and Facility Maintenance supplies
• Office supplies

• Not consignment. You still own the inventory once it’s delivered and pay for what’s shipped.
• Not a loss of control. You set the levels and approve changes.
• Not only for big plants. Any plant buying the same supplies every month qualifies.

Count the hours your team spends each week counting, ordering, and chasing packaging. Multiply by your loaded hourly rate and by 52. That number is the starting value of VMI before you count a single avoided stockout.

S&S runs VMI programs for manufacturers, and no one has ever run out of product. Send us your packaging list, and we’ll show you what a VMI schedule would look like for your plant.

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