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Vendor Managed Inventory

What is Vendor Managed Inventory?

Vendor Managed Inventory (VMI) is a collaborative approach to inventory management and order fulfillment. Instead of the customer ordering goods from the supplier, the responsibility of ensuring that the customer has the right amount of product, at the right time, lies with the vendor. In this case, that vendor would be United Pacific Forest Products.
multiple large stacks of pallets lined up in the UPFP Woodburn warehouse.

benefits of vmi

Efficiency: By placing the responsibility of inventory management on the vendor, customers can focus on their core business operations, knowing their product needs are being handled expertly.

Cost Savings: Reduced risk of stockouts and overstocks means savings on rush orders and holding costs. Plus, with better forecast accuracy, both parties can plan production and logistics more efficiently.

Enhanced Collaboration: VMI fosters a stronger relationship between United Pacific Forest Products and its customers. The shared objective of maintaining the right inventory levels encourages communication and collaboration.

Flexibility: In ever-changing market conditions, having a system that adjusts inventory levels based on real-time data ensures that businesses remain agile and responsive.

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