For manufacturing and industrial facilities, Vendor Managed Inventory (VMI) is an important component for streamlining supply chain operations. One of the key factors in an effective VMI program is the organization and storage of the inventory. There are many ways to set up VMI, but using a supermarket setup is one of the most efficient methods. This system optimizes inventory management by using central stocking locations in your facility that can be organized by commodity, part number, size, or alpha-numeric.
What Is a Supermarket Setup in VMI?
Supermarket setup in VMI is an inventory management system that uses a traditional layout and flow of a retail supermarket. With items stored on shelves for easy access, just like your local supermarket, this setup provides an organized way for your employees to gather and store parts, commodities, or other raw materials used in your manufacturing process. If you have large quantities of parts or supplies, central stocking locations are particularly helpful for quick retrieval of parts and for reordering when stock gets low.
Benefits of a Supermarket Setup
When your inventory is managed in one place with a supermarket setup, you can reduce the chance of parts being misplaced, your vendor can easily manage stock levels for each item, and risk is reduced for running out of stock or overstocking parts. Some common ways of organizing the supermarket setup include:
- Commodity-based: Using a commodity-based organization makes it easy for your team to find what they need, such as electrical components in one section and mechanical components in another.
- Part Number or Size Order: For some operations, storing components in part number or size order is preferred. It is more precise than grouping by type of item and reduces human error when you have hundreds of similar parts or sizes of an item.
- Alpha-Numeric: This method uses letters and numbers to identify parts in your facility. Your team can locate parts based on the product, size, or any other feature that makes sense when managing thousands of SKUs.
Why Supermarket Setup is Ideal for VMI
Keeping track of inventory across vendors is challenging. Using supermarket setup simplifies your inventory process with increased visibility into stock levels, reduced risk of overhead due to overstocking, and enhanced accuracy for your parts and components.
As the demands in each industry continue to grow, you need more accuracy in your supply chain and inventory management. The supermarket setup can be a great choice if you are trying to reduce costs and improve efficiencies. Gexpro Services provides a robust vendor managed inventory program with many options including supermarket setup. We can help ensure your parts and components are organized, stocked at the appropriate levels, and tailored to meet the needs of your organization. Talk to our team today about VMI solutions and simplify your inventory management.