By Carol Tice
Managing inventory is an operational aspect of almost every business. Efficient vendor managed inventory can increase margins and reduce costs.
In order for small businesses to realize the supply chain benefits of vendor managed inventory, a working partnership must be forged between supplier and customer.
Build a Vendor-Customer Relationship
The key for small businesses to implement a successful vendor managed inventory system is to approach the relationship with suppliers as a partnership.
In many cases, vendors tend to operate on an island. They receive orders, ship out goods and services, and move on to the next order. When this happens, vendors don't know whether the final goods or services that they contributed to in the supply chain sold quickly or not at all.
Vendor Managed Inventory Partnership Tips
Consider the following advice when trying to build a relationship with vendors:
The benefits that accrue to a small business from building lasting relationships with vendors are immense.
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