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Now,VMI is becoming a trend in the mainstream of the global electronics manufacturers. VMI is the so-called raw material inventory from the hands of the user back to the provider to manage, thus reducing the inventory costs and risks of the supply chain parties. The obvious benefits to the manufacturers are that there is no front-end stock funds to the occupier, and also reduce the loss of market changes brought by the devaluation of the material. For suppliers, it means that the pressure and added function on the stock transferred to the hands of their own, which makes products and inventory management more difficult for the majority of the suppliers.
VMS introduce the third-party vendor-managed inventory business can assist suppliers to achieve the purpose of the following:
  • To provide VMI service for the suppliers who don’t have to set up their own warehouses , and to meet the manufacturers` needs and to win orders;
  • Can be used for a number of services to manufacturers of inventory, to balance stocks and reduce the overall inventory cost;
  • Can make use of VMS distribution and bonded warehouses near the manufacturers, such as al-edge resources and services, to provide fast distribution for the manufacturers.
  • Can make use of value-added logistics services provided by VMS to achieve their differentiated services, such as packaging, labeling system, and so on, to obtain a competitive advantage;
  • Seasonal fluctuations in the larger suppliers, the use of third-party distribution center, which can be adjusted to the stockroom to save costs and improve the flexibility of the purpose of the stockroom a short period of time;
  • VMI outsourcing (from the suppliers to apply for export tax rebates, customs inspection, bonded warehouse to the value-added logistics services) can make itself more focused on the product and customer development so as to enhance their business competitiveness and access to the benefits of professional division of the labor;
  • The realization of imports in the VMI and the bonded warehouse for a simple processing functions, the realization of deferred expenditure and re-export trade tariffs and other functions;
    If you need more information, please contact us for the customized logistics solutions.
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