Coretec’s Vendor Managed Inventory (VMI) programs are yet another
example of our value added services offering.
Why VMI?
- Improved Inventory Turns
- Only stock what is required
- We replenish stock as you consume it
- Coretec will hold inventory
- Ease of Management
- No more discrete PO’s to generate
- Reduced accounting administration
- Coretec actively helps you manage the inventory details
- Coretec adheres to FIFO
- Favorable Pricing
- Savings from optimized production lot sizes and improved capacity
utilization are passed onto the customer
What type of product is a good VMI candidate?
- Products in mature stage of lifecycle
- Infrequent Part Revisions
- Consistent usage pattern
- Qualifying Order Size
- Minimum shipment value = $800
- Minimum number of panels = 6
- Stable future forecast
We provide several options with regards to inventory management
solutions tailored to meet your needs.
- Demand Pull
This model is your traditional KanBan system where a predetermined bin
size is maintained by Coretec and shipped within 48 hours of the
customer’s trigger. Triggers for inventory replenishment can facilitated
through a customer “Exception Report” or a discrete Purchase Order.
- Key considerations
- Trigger option
- Reorder point (ROP)
- Reorder/Bin quantity (ROQ)
- Pull frequency
- Manage to Forecast
This model is designed to reduce administration and cycle time. It involves the interfacing of our ERP system with the customer’s MRP to launch precise release quantities to our shop floor versus the traditional discrete purchase order route.
- Key considerations
- Forecast must be relatively stable over time
- Customer is obligated to the “launched” quantity of product
- A blanket P.O. is required
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