VMI for Global Automotive Manufacturer

The Challenge

We worked closely with a Global Automotive Manufacturer to evidence that the current fastener vendor managed inventory flow provided by national accounts could be enhanced by utilizing a local supplier like us.

Customer VMI Pitfalls

  • Packing size requirements established for production line counts not met
  • Localized inventory promises to ensure no downtime not kept
  • Labeling requirements for unique part numbers other than vendors not met
  • Cost Savings Programs not launched forward

WFS Solution

A customized Vendor Managed Inventory Solution was presented to the customer after an on-site visit at the customer location. The customer also paid a visit to our company premises.  The solution presented included the following among other problem-solving approaches:

  • Pack size was altered by all of our supplying vendors to meet the specific pack count requirements defined by our customer
  • Using customer provided Estimated Annual Usage (EAU) data, we placed inventory on hand at our WFS Warehouse to guarantee that a 90-day usage could be met at all times without any further commitment from the customer
  • All customer part numbers were cross-referenced on all labels to avoid any issues upon receiving material and make sure the correct material would be placed on the production lines

This specially designed VMI Solution resulted in total customer satisfaction and initial 38% price decrease. Furthermore, our company was able to keep pricing stable for a period of 24 months.