Every hour you spend hunting down parts is an hour you could be spending optimizing your production processes. Vendor managed inventory (VMI) is designed to take the delays and risk out of ordering parts so that you can focus on running your business.
Olander has been managing customers’ inventory for 25 years. Our technical experts can help you manage your inventory in ways that:
- Reduce your inventory costs.
- Eliminate the cost of incoming inspection.
- Reduce the floor space you need for inventory.
- Consolidate your vendor base.
- Maximize your inventory turns.
About Olander VMI
Olander’s VMI program offers you:
It’s easy to get started with an Olander VMI program. A dedicated Olander Business Development Manager and a VMI Representative will work with you to gain a deep understanding of your business. You’ll provide them with an initial list of items and usages to ensure adequate stocking levels and replenishments. Olander will update and refine this initial list and usage data as your VMI program matures.
Throughout your relationship with Olander, our experts will help your assembly teams by continuously introducing new technology for automation and products. By eliminating unnecessary hardware in your production line, you can achieve faster assembly and reduce your costs.
Customized Bin Arrangements and Labels
Once your VMI program is up and running, we’ll handle your inventory levels, usage reports, replenishment generation, and placement of stock in the bins. We’ll also send monthly reports to your designated personnel.
Each of our VMI programs is designed to streamline part identification and reduce errors. We use barcoded labels and customer part numbers with current min/max quantities, and we incorporate electronic scanning to enable error-free replenishments.
Flexible Audit and Replenishment Schedules
When Olander holds your safety stock, you can eliminate the long lead times that often cause delays in your production. Our VMI programs let you benefit from agreed-upon inventory levels and contract pricing, which reduces your need to seek current pricing with each new purchase.
Routine Inventory Evaluations and Reviews
Your inventory needs are always changing, and Olander is ready to respond. In our VMI programs, we’ll collaborate continually with your principals on stocking levels, replenishment frequency, usage reporting, and item ownership. You’ll maintain a completely transparent view of what’s in your inventory and how your needs are evolving.
How Can You Benefit from VMI?
Olander VMI isn’t a one-size-fits-all program. It’s customizable to your needs. We let you choose the VMI arrangement that best meets your volume and business priorities.
If you require on-hand safety stock, you’ll appreciate our VMI Kanban System:
- Our 2-Bin system allows for large spikes in usage.
- Once the first bin is empty, the bin is removed and placed on top of the rack or in a holding area for replenishment.
- The second bin located behind the first is moved to the front of the rack for consumption.
Our Apex Smartbin System provides active reporting of the quantity on hand for all items:
- The Smartbin has a built-in weigh scale that’s programmed with the piece weight of the item stored in the bin.
- You can run a report any time to account for the exact quantity of each item in the bin.
- The value of the product in the bin and the need for automated replenishments at established levels enable greater ROI.
- Electronic reporting also eliminates costly manual inventory counting.
Our Mobile Rack, Wall Rack, and Cabinet VMI programs are popular due to the lower costs of capital equipment, ease of access, mobility of storage, and the desire for an esthetically functional alternative.
Greater Control Over Shrinkage
Olander provides options for vending machines and storage lockers. Employees simply use an identification number to receive product or to remove items that will need to be returned to a storage locker at the end of the shift or completion of work.
Questions About VMI?
We’re Here to Help
Find out how an Olander VMI program can help your company save time and money! Contact us to learn more.
Brad Hendrickson, Purchasing Manager
When it comes to having the fasteners his company needs to build made-to-spec metal parts, Brad Hendrickson says “I shouldn’t have to think about it—it should just happen.” That’s why Hendrickson and his company rely on Olander’s VMI program to keep their bins stocked.
As Purchasing Manager for JL Haley, Hendrickson would rather spend his time thinking about complex, strategic topics, rather than just nuts and bolts. For 20 years, Olander’s local reps have come on-site at JL Haley to replenish bins each week. Most of the items and quantities are routine and don’t require discussion.
“Because we can trust Olander to give us exactly what we need each week, I only have to keep the slimmest of buffers,” says Hendrickson. “That means our manufacturing bins can remain small and we can avoid tying up capital in inventory. Plus, invoicing and payment works seamlessly.”
When JL Haley does need a different item to support development of a new product, he knows he can count on Olander.
“We always work with Olander on part availability before we plan a product launch,” Hendrickson explains. “About 95 percent of the time, they either have the part within 60 miles of our plant or can get it to us by the next day.”
JL Haley relies on Olander for more than just fasteners. Like most manufacturers, the company recently found itself challenged to demonstrate the compliance of its parts with the European Union’s Restriction of Hazardous Substances (RoHS) Directive and Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). When a potential client asked JL Haley for documentation, the company called Olander.
“JL Haley called us with the request and we sprung into action,” recalls Tom Masters, Olander. “We already knew that every part we sell was RoHS-compliant, so we simply went down the list to ensure that everything we were providing to JL Haley was also REACH-compliant. We got them a letter of documentation within an hour. It’s just another way that we can take the burden off our customers and let them focus on running their businesses.”
Hendrickson reports that over the years, other vendors have come in to try to win JL Haley’s business—sometimes with lower prices. But he and his colleagues value the personal relationship they have with their Olander representative.
“It’s always a no on switching vendors,” Hendrickson remarks. “The Olander rep we work with has a local office and knows our business inside and out. I’ve always gotten the impression I’m his most important customer by the way he’ll drop whatever he’s doing to take care of a special request. It’s a feeling I’ve never gotten from another supplier, and it’s the main reason we stick with Olander’s VMI program.”