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Vendor Managed Inventory (VMI) Program

Streamline Your Supply Chain with NAPPCO’s VMI Program

At NAPPCO Fastener Company, we understand the importance of maintaining an efficient and cost-effective supply chain. Our Vendor Managed Inventory (VMI) Program is designed to help you optimize inventory levels, reduce stockouts, and improve productivity. By partnering with NAPPCO, you gain access a customized approach that helps you reduce excess inventory, improve cash flow, and enhance operational performance to keep your production running smoothly.

With our flexible, data-driven VMI solution, you gain:
  • Lower total cost of ownership
  • Improved cash flow & working capital
  • Better forecasting & demand planning
  • Stronger supplier partnerships & streamlined procurement
Reduced Inventory Costs

Lower carrying costs and free working capital with leaner stock levels.

Fewer Stockouts

Protect your production line with >95% on-time delivery rates.

Less Admin Work

Eliminate redundant purchase orders, invoices, and supplier touchpoints.

Stronger Supply Chain Resilience

Local stocking, safety stock planning, and engineering support reduce risk.

Floor Space Optimization

Free up valuable square footage by eliminating large in-plant storerooms.

Smarter Inventory. Lower Costs. Greater Reliability.

Our programs consistently reduce stockouts by more than 30%, cut administrative time by up to 90%, and lower total carrying costs by as much as 40–70%. Whether you’re a high-volume manufacturer or a multi-site operation, NAPPCO designs VMI solutions that drive efficiency while protecting your production line.

Our VMI Services Include:
  • On-Site Stocking Programs – Bin, rack, and point-of-use replenishment tailored to your plant layout.
  • Forecasting & Replenishment – Data-driven ordering that balances availability with lean inventory.
  • Industrial Vending Solutions – Secure, trackable dispensing that can reduce high-use item consumption by 30–35%.
  • Kitting & Packaging Integration – Customized kits tied into your VMI program for streamlined assembly.
  • Usage Reporting & Analytics – Visibility into consumption trends to guide smarter procurement decisions.

How We Do It

4 Steps to a High-Performance VMI Program

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Data-Driven Assessment & Customization

We analyze your historical usage, demand patterns, and procurement cycles to develop a VMI strategy tailored to your business. This ensures optimal inventory levels, eliminates inefficiencies, and aligns with your production needs.

Seamless Integration & Implementation

Our team integrates with your ERP/MRP system, automating replenishment and reducing manual order processing. This minimizes disruptions while ensuring real-time visibility into inventory levels, order status, and supply chain performance.

Continuous Cost Reduction & Optimization

Our VMI program eliminates inefficiencies that lead to excess inventory, freight costs, and vendor complexity. It also reduces stockouts, over-ordering, and quality control issues. With fewer administrative tasks, your team can focus on high-value work that drives growth.

Proactive Monitoring & Continuous Improvement

Our VMI program isn’t static—it evolves with your business. We conduct regular performance reviews, analyze trends, and make real-time adjustments to enhance efficiency, reduce lead times, and support changing market conditions.

Custom VMI Programs Built Around You

At NAPPCO, we know one-size-fits-all doesn’t work when it comes to inventory management. That’s why we build custom VMI programs designed around your unique operational goals, plant layout, part volume, and workflow. Whether you're managing one site or several, we take into account inventory levels, quality control, storage, and handling requirements to create a system that fits—perfectly. We offer a range of flexible VMI models, each tailored to improve efficiency, reduce administrative burden, and ensure the right parts are always available when and where you need them:

Custom Programs

If our standard approaches don’t match your needs, we’ll design one that does. We collaborate closely with your team to build a custom inventory solution that aligns with your internal processes, production cadence, and procurement strategy—whether across departments, sites, or industries.

In-Plant Store

For high-volume manufacturers needing daily replenishment, we can embed inventory and staffing directly within your facility. With dedicated onsite support, your NAPPCO field rep manages stock levels, replenishes bins, and often serves as your account manager—delivering hands-on service from inside your operation.

Bin Stocking

Our field rep audits inventory on-site using barcode scanners and replenishes items that fall below minimum levels. This data-driven approach ensures product availability and minimizes stockouts, with a focus on continuous improvement and real-time decision-making at the point of use.

Consignment Inventory

With consignment, inventory is stored at your facility but owned by NAPPCO until it’s used—triggering payment only when parts are consumed. This model is ideal when you need just-in-time availability but want to reduce working capital tied up in inventory.

Point-of-Use Systems

Keep inventory exactly where it’s needed—right at the assembly station. We work with you to size bins appropriately, streamline replenishment, and eliminate wasted motion, so your team stays focused on production, not searching for parts.

Industrial Vending Machines

For secure, trackable access to high-use or high-value items, industrial vending machines offer a smart, automated solution. These machines dispense fasteners, tools, PPE, and other consumables based on employee credentials or job codes—helping you control usage, reduce waste, and maintain accountability. NAPPCO can help you select the right vending setup, manage inventory inside the machines, and integrate reporting tools to optimize your supply chain.

Ready to streamline your supply chain? Let’s build a VMI program tailored to your operation—contact us to get started.

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