The COVID-19 pandemic has changed the way we do business. In the recent past, distributor sales representatives would arrive onsite to evaluate inventory items, plan future purchases and advise on new and improved solutions. Now, pandemic restrictions dictate who can be onsite, severely limiting the distributor/customer interaction.
Distributors have had to refocus their own business practices to accommodate their customers’ changing needs as well as state and local regulations requiring social distancing. For now, and the foreseeable future, in-person meetings have been reduced or replaced with:
- Drive-thru services
- Teleconferencing
- Curbside pickup
- Reduced stocking activities
- Remote workforces
COVID-19 Drives Customer Managed Inventory (CMI) Solutions over VMI
Traditional vendor managed inventory (VMI) programs are great for creating a stronger connection between distributors and their customers. Through constant monitoring and automatic ordering, distributors can help their customers make informed supply decisions and keep operations running efficiently.
Since the pandemic began, however, more companies have sought out solutions to take direct control of their supply management.
Customer-managed inventory programs put control back into the customer’s hands, allowing them to effectively manage their own inventory items. Value-added solutions for CMI like inventory management software and industrial vending machines can help distributors stay top-of-mind while offering a contactless option for employees to obtain supplies.
What is Industrial Vending? Read full white paper here.
6 Best Practices for Implementing Customer Managed Inventory through Vending
Industrial vending machines and inventory control software are a popular CMI solution because they are simple to use, easy to install and automatically track inventory usage. These features have been effective at reducing consumption by up to 30% or more. For that reason, vending machines and inventory software have been gaining popularity among industrial customers looking to optimize their inventory management systems.
Below are some ways industrial vending solutions can help your customers effectively manage their own inventory needs.
- Increased Visibility
1sourcevend’s robust tracking capability gives customers a clear view of inventory items, right down to the job or user. Weekly or quarterly automated reports help customers prevent stockouts and plan for budgeting and future purchasing. - Streamline Inventory
Traditional inventory management often results in customers’ outlaying a substantial amount of money to stock mission-critical items. Vending with inventory control software allows customers to see where and how inventory is used and make better data-driven decisions in the purchasing and placement of inventory. - Trend Tracking
Data reports and analytics give detailed views into past and present inventory usage, while helix coil machines and locker options offer flexibility should inventory needs change. By tracking trends over time, customers zero in on their inventory needs for lean management and lower carrying costs. - Identify Overuse and Reduce Waste
Up-to-the minute tracking and reporting features help customers identify employees who may be hoarding or overusing inventory items, improving employee accountability. Additionally, workers have reliable access to the items they need to perform their jobs safely and productively. - Real Time Reporting
1sourcevend’s proprietary software offers real-time reporting on inventory levels and eliminates confusing paper-based transactions. Customers can choose customizable min/max levels to stock only the items they need for efficient operations. Real-time reporting allows data from several machines to be aggregated, then accessed by distributors as well as key department heads or employees. - Prioritize Safety
Industrial vending machines are an effective way to track and dispense critical PPE items and cleaning supplies at the point of use. With safety items available where workers need them, companies can enforce a stricter PPE program and improve safety compliance within the organization.
While there is no substitution for the one-on-one personalized service people have come to expect from their dedicated distributor reps, there is value in innovation. Distributors can leverage existing technology to drive replenishment and re-align their focus to a consultative approach less sensitive to market changes.
In fact, a recent McKinsey report stated that distributors can deepen market penetration with better demand planning and attention to customer pain points. With today’s analytics and digital tools, distributors can unlock productivity in inventory management and warehousing to deliver more value to their customers.
1sourcevend’s point-of-use inventory solutions and software are designed by distributors for distributors looking to differentiate themselves from the competition. Learn how 1sourcevend can help you choose the right inventory management software and American-made vending solutions to empower your customers. Request a Demo