Vendor-Managed Inventory in Roll Forming

Don’t enter a roll forming partnership without a solid vendor-managed inventory agreement (VMI).

As metal inventory ages, it can depreciate to the point of holding little to no value. Storing inventory for too long can negatively affect your bottom line or force you to ship products before your customers want them.

Conversely, if you don’t hold enough inventory, you end up scrambling to meet unexpected spikes in demand.

Since 1996, Dahlstrom Roll Form has successfully constructed and operated vendor-managed Inventory systems for our customers with repetitive, ongoing production requirements. The keys to our many successful long-term partnerships are:

  • Trust
  • Communication
  • Customization

We tailor each system specifically to your company’s product demand. However, all are fundamentally based on proven just-in-time delivery, Kanban, and pull system concepts. By partnering with Dahlstrom, you can enjoy immediate component availability and maintain optimal inventory.


Advantages of Vendor-Managed Inventory for the Buyer

When you invest in a vendor-managed inventory service, you actually invest in yourself:

  • Reduce inventory costs: Detailed forecasting ensures that you receive the right amount of finished product at just the right time. Stop spending extra on unplanned rush orders! Also, we share some of our floor space so you can free up yours.
  • Focus on what’s important: We know what you need before you even realize it. Don’t worry about whether the product is going to show up at your facility or not — we’ll handle that. Use the extra time to focus on growing your business instead!
  • Improve logistic management: Lean manufacturing and good supply chain management make your order process simple, cost-effective, and repeatable. 

Vendor-Management Inventory Agreements With Dahlstrom

As a part of our customer relationship suite, we conduct quarterly reviews to assess your specific supply needs as the year progresses. These meetings are extremely valuable in understanding your inventory use in both peak and slow seasons.

Here’s what a typical review looks like:

  1. What’s been happening? First we review your standard consumption data and address any issues regarding delivery, packaging, product quality, or placing orders.
  2. Collaborative discussion on forecasting for the quarter and year. We assess the estimated annual usage (EAU) data used to run the system, then adjust trigger points for ordering raw materials accordingly.
  3. Determine future plans. Is your operating plan on track, behind, or ahead? Are there any sudden increases in demand on the horizon? Will there be any changes to the component design in the next few months?

Got Roll Forming VMI Questions?

It’s easier to follow vendor-managed inventory best practices when you have a close, long-term relationship with a supplier like Dahlstrom. We have the time, capacity, and dedication to give your supply chain the attention it needs.

Ready to build a strategic material purchasing plan? To talk about your custom inventory management needs, click below and drop us a line: