Vendor Managed Inventory
Do you experience any of the following challenges managing your inventory?
- You don’t stock enough product and run out
- Vendor lead times put you behind
- Demand for a product spikes and you don’t have enough in stock
- Supplier minimums cause you to stock extra product and face the burden of extra inventory
- You experience associated problems, such as:
- Insufficient warehouse space to store extra inventory
- Employees are running out in the middle of the workday to replace basic supplies
Atlantic’s Vendor Managed Inventory program offers the solution you need.
Enjoy the Benefits
Supply Chain Efficiency:
Our industry experience means that we understand your space constraints and can identify and recommend your exact inventory needs, providing just enough of each supply you need on a weekly, or bi-weekly, basis.
Expert Advice and Behind-the-Scenes Management:
In a world of “Bigger is Better”, it’s still the person on the floor watching your business that really matters. Because your Atlantic Account Representative shows up on site, they can proactively manage your inventory.
Your Atlantic Account Representative helps a host of companies maintain their supply levels, so you get the benefit of their best practice industry knowledge. We can watch industry trends and anticipate potential demand spikes or other challenges, and adjust inventory levels accordingly so you never feel the pinch. We also have an extensive knowledge of various product lines and can recommend alternative, cost-saving options to your existing supplies.
VMI is set up as a team approach, with your Atlantic Account Representative visiting weekly to monitor your inventory levels. Then, on a monthly basis, your Account Manager, an Atlantic Paper executive, visits with your Representative to answer any questions and provide a higher level of expertise when necessary.
Emergency Supply Delivery:
Our in-house purchasing team keeps an inventory of all managed supplies for our VMI customers in our warehouse. We are willing to guarantee inventory levels so you never have to worry about running out.
The Atlantic Advantage:
Award Winning Customer Service: Because of our commitment to transparent business practices and best-in-class service, we are proud to say we were named a “Partner of the Year” by the Rhode Island Manufacturers Association for our dedication and commitment to serving our customers.
You can add or drop any item from your VMI program at any time.
Trust is the cornerstone of our VMI program, and we earn that by over-communicating with you. Our goal is to make our clients’ lives easier, and while that doesn’t necessarily mean coming in at the lowest price, it does mean that we can provide real cost-savings by helping you purchase smarter. We have valuable institutional knowledge and are willing to do the work to ensure that your inventory levels are constantly maintained in the most efficient way possible.
We offer these services at no cost, and with no hidden fees to our select VMI customers. Atlantic Paper is sustained by building long-term relationships with our customers and doing repeat business with them, so have an incentive to provide exceptional service and advice.
Experience Real Cost Savings
Automatic price reductions:
VMI includes commodity products, which can fluctuate in price. Because of this, Atlantic Paper is the only company that monitors market prices and voluntarily passes along the lower prices to customers when its own costs go down.
Reduced time managing multiple vendors:
Tracking multiple suppliers costs companies a lot in both time and money, from researching product pricing to chasing down unavailable items to processing multiple invoices. In fact, industry averages indicate it costs between $75 – $150 of hourly time to process one purchase order from requisition to invoice payment. The more vendors you manage, the more administrative costs you accrue on a monthly basis.
New cost saving ideas:
Our proactive inventory management can also find opportunities to consolidate your purchases and save money, and provide you with a Customer Savings Report that details your cost savings on an annual basis. Some examples of how we have helped customers save money through our VMI recommendations:
- Consolidated shipping box inventory by identifying one medium sized box that effectively replaced two different but similarly sized boxes
- Recommended a thinner gauge plastic wrap or bag because the company was buying too heavy a grade for its shipping needs
- Identified situations where sub-standard wraps or packaging were potentially causing insurance, shipping, or damage risks because of breakage and shifting during transport
You can be confident knowing that we lock in prices for 3 months at a time, and only raise them when there is an industry-wide price increase (e.g. corrugated box pricing almost invariably goes up in tandem from all the mills). By the same token, we automatically reduce prices when our costs go down. Either way, Atlantic Paper has your best interest in mind.
Additional time savings:
With your Atlantic Account Representative on your side, your floor and warehouse managers can focus on their actual jobs, without having to worry about stocking supplies or running out to replace missing items, which can take up to 40 hours a week for some large companies.
How It Works
Initial walk through:
We physically walk through your facility with your team to look at the products you have in your store rooms or warehouses.
Determine which products to manage.
We work with you to determine which products will be involved with our initial VMI pilot. We do not need to supply everything – it’s up to you how much of your stock you want AP to supply.
Set inventory levels:
We work with you to establish a baseline supply level for all VMI products (generally about three weeks worth).
We will monitor your inventory levels on a weekly or bi-weekly basis, depending your company’s needs and space requirements. When supplies need to be ordered, they are delivered the next day.
Atlantic Paper provides ongoing management to all VMI customers, including continuously monitoring and adjusting inventory levels, identifying new ways to consolidate products and suppliers to save money, and offering any additional assistance as needed.