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Services : Vendor Managed Inventory (VMI)

In IPS Vendor Managed Inventory (VMI) Program, the customer’s materials are positioned in our VMI hubs across the geographical spread and pulled on a just-in-time (JIT) basis. Acting as a single point of contact to coordinate all procurement and purchasing activities, we ensure that the optimal amount of inventory is maintained at the hubs and material cost is minimized with our supply base consolidation efforts.

Benefits of IPS VMI Program to our customer include:

1. Reduced Inventory Exposure : End-to-end supply chain will carry less inventories thus resulting in less obsolescence

2. Space Savings : Optimized inventory levels are maintained at our VMI hubs; therefore the customer only needs to set aside minimal warehouse or staging space

3. Headcount Savings : With supply base consolidation and leveraging on IPS’ one-stop solution, the headcount to execute procurement, purchasing and logistics functions is minimized

4. Financial Savings : With the JIT model, customer need not tie up substantial capital to finance large inventory holdings

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