Vendor managed inventory, or VMI, is an inventory technique where the supplier, and usually the manufacturer, is responsible for optimizing the inventory. These responsibilities include physical counting or counting based on data, and, once these counts have reached the designated recorded points, vendors automatically refill the customer’s stock for them.

There are many vendor managed inventory benefits for your business, and when your packaging partner manages your inventory for you, you won’t have to worry about running out of stock or placing rush orders. Let’s explore some of the top vendor managed inventory benefits.

Common Vendor Managed Inventory Benefits


One of the primary vendor managed inventory benefits is its cost savings. These services can help your business save money in all areas of the supply chain. Since the vendor manages stock, you won’t have to spend time working to plan your inventory and can focus your time and resources elsewhere. Your vendor will also know how much product you will need, exactly when you need it. This means that you will never over-order and pay for storage costs or run out of inventory, ultimately saving you time and money.

Reduced Risk

Even when you utilize vendor managed inventory, you will still be working directly with your vendor for your inventory needs. But, since your vendor knows exactly how much inventory you have and the cadence of when you need more products, you will avoid ordering too much or too little of the products you need.

Improved Forecasting

In VMI, data is constantly being shared between the vendor and the retailer. This process provides up-to-date information about the stock so the vendor knows exactly when they need to fill inventory to meet the needs of the client.

Sharing data also allows you to analyze trends in your inventory. By identifying slow seasons and busy seasons, you and your vendor are easily able to plan ahead so you are prepared no matter what the future may bring.

Fewer Errors

Human error is common and ordering too much or not enough product can be costly to your business. With the vendor being responsible for your inventory and placing orders on your behalf, you will no longer have to worry about one of your departments or employees making a mistake.

This also allows your business to allocate more resources to other areas of focus. When more employees are able to work on a project, they can devote more attention to it, meaning there will be fewer mistakes in the work.

Are You Interested in Experiencing Vendor Managed Inventory Benefits? Turn to ROICOM USA

At ROICOM USA, we are committed to manufacturing high-quality, durable, customized corrugated packaging solutions. We have the ability to create product and shipping boxes, corrugated displays, inserts, trays, and partitions.

Not only do we manufacture custom corrugated packaging solutions, but we offer various value-added services. Our team will take care of your inventory management so you never have to worry about having too much inventory or too little. In addition to our VMI services, we also offer kitting and assembly for your products.

ROICOM USA has invested in a specialty folder gluer to provide better products for our customers. This machine precisely and efficiently folds and glues a diverse range of corrugated boxes.

Our corrugated products are some of the most sustainable packaging solutions on the market. They are durable enough to be used repeatedly while also being highly recyclable. All of our products are made from corrugated materials, so all of our products are sustainable.

Contact our team today to get started.