Press release submitted on behalf of BinMaster.
Plastic manufacturers, working to increase supply chain agility, can use sensors and cloud-based software to source bulk material through Vendor Managed Inventory.
VMI occurs when suppliers manage inventory to pre-determined levels. In short, supplier(s) follow guidelines established by a plastic manufacturer to replenish material continuously. Managers go from ordering material to strategically managing bulk supply relationships.
“VMI relies on good measurement baselines and cloud-based sharing,” said Mike Mossage, VP Eastern Region at BinMaster. “We work with manufacturers who give suppliers user access to BinCloud where they can watch resin levels in a silo and plan for the next delivery.”
How to share bulk material inventory with vendors?
Plastic manufacturers can “see inside silos” without stepping out of a control room. By installing BinMaster sensors on top of silos, a cloud-based measurement can be sent to BinCloud software which organizes all the readings and provide graphical reports via the cloud to phones and PCs.
It’s an ideal system for VMI allowing companies to share data with vendors, drivers, and managers. BinCloud pulls reading from one or many sensors. One login can bring data from dozens of silos in many locations. The software includes trendlines to predict future use, alert for low material, and downloadable reports showing historical use.
BinCloud’s VMI Benefits
- Accurate measurements continuously updated
- Control access credentials for each supplier
- Assign materials and locations each vendor can monitor
- Make supplier evaluations easier. Sorting and reporting vessels by vendor and material, you can see exactly which suppliers are performing up to par.
- Set alerts to plan production and delivery logistics
- Generate automated reports for timely ordering
What are the benefits of Vendor Managed Inventory?
Mossage said VMI can reduce work for supply chain managers who can audit activity and even seek better pricing on bulk material costs. He said VMI benefits a company’s agility to reduce stockouts, respond to market changes, and improve adaptability in the sourcing process.
“When supply managers move some of the day-to-day work to suppliers, they can step back and get strategic with their bulk material purchases,” Mossage said. “We see companies set up VMI with multiple vendors for a more agile supply chain with accountability. The supply chain managers are focusing less on buying and contracting to managing these suppliers. I think some strong bonds are built this way.”
VMI benefits
- Reduced inventory costs
- Improved inventory accuracy
- Better coordination and visibility
- Faster order fulfillment
What is bulk supply chain agility?
Supply chain agility refers to the ability to respond quickly and effectively for positive marketplace change, customer demands, and disruption in the supply chain itself.
- Flexible (multiple sourcing options, production facility, distribution options)
- Responsive (rapid production schedule changes, adequate inventory levels, reliable transportation)
- Resilient (plan B for disruption, natural disaster, politics, supplier failures)
- Collaboration (strong supply partners, communication, rapid measurement sharing, quick decisions)
- Technology (predictive models, historical reports, real-time visibility, automation)
Challenges of bulk material inventory and sourcing
- Purchasing raw materials and items accounts for more than 50% of a firm’s running production costs.
- Changing market needs
- Supply chain disruptions
- Regulatory pressures, and increasing customer expectations
- Product scarcity
BinMaster is home to manufacturing automation experts who can help configure bulk material inventory systems that measure material, control mechanical processes, provide point level alerts, and organize data into one cloud-based platform (BinCloud). Visit binmaster.com.
