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VMI Partnership

May 5, 2009

True Partnership

Vendor managed inventory works best when it is a true partnership.

By Jim McLaughlin

Wouldn't it be wonderful if every time the roll of toilet paper was near the end, it would magically be replenished? Although there is no such thing as a “TP” fairy, there are inventory fairies, better known as VMI supply partners, that assume the responsibility of inventory planning and stock replenishment.

For most VMI suppliers, Wal-Mart has set the standard for a well-oiled VMI machine, especially in the retail segment. The basic design of a VMI has transcended into the industrial manufacturing market, too. Most large USA manufacturers are transitioning to a VMI relationship, where suppliers are responsible for delivering their products, stocking and auditing current on-hand quantities on the manufacturer’s floor. At the end of the cycle, the VMI supplier continues the supply circle by generating the next order for delivery.

Web site storefronts and portals, as well as direct point-to-point system integrations facilitate an electronic vendor-managed inventory system.

Not all supply sources that present themselves as a VMI provider offer this electronic integration of a vendor managed inventory system. Failure to transcend into an electronic VMI system will catch up sooner or later with these antiquated supply systems.

Purchase Partners has been a leader in the area of electronic VMI integration, utilizing on-line customer portals, real-time data exchange, bar code scanners, bin stocking identification, and much more for more than a decade.

Furthermore, everything is very transparent to our client base, providing them all the resources needed to promote a complete, full and true partnership. Also integrated into our VMI system is our trademark 3PL Plus system, where we seamlessly integrate your existing vendors into our VMI supply system.

We are continually striving towards new and improved VMI supply systems and you can count on us to do all we can to promtoe the growth and profitability of our customers.

Purchase Partners is your Supply Source to Better Inventory Solutions!

Threaded Rod Anti-Dumping Update

Commerce Finds Unfair Dumping of Steel Threaded Rod (February 23, 2009)

The Department of Commerce announced its affirmative final determination in the antidumping duty investigation on imports of steel threaded rod from the People’s Republic of China (China). Dumping occurs when a foreign company sells a product in the United States at less than normal value.

Mandatory respondents received a final dumping rate of 55.16 percent. Nine Chinese exporters received a separate final rate of 55.16 percent. All other exporters will receive the China-wide rate of 206.00 percent.

Importer Security Filing (ISF) – 10+2

Dear Valued Customer:

The Importer Security Filing Rule has been issued by the United States Government to fulfill the SAFE Port Act of 2006 statutory mandate (enacted by the U.S. Congress) and to increase the security of cargo entering the United States via vessel by improving CBP’s risk assessment capabilities.

All shipments made into the United States are now required to electronically send the ISF 10 + 2 data elements to the U.S. Customs Department.

St. Louis Business Journal - by Patrick L. Thimangu

Steel prices, which more than doubled between the summer of 2007 and 2008, have fallen sharply as the economic recession hammers large consumers of the metal.

According to data from MEPS (International) Ltd., a British metals industry consultancy, average prices for benchmark hot rolled coil (HRC) steel rose from about $680 per metric ton in September 2007 to more than $1,200 in July 2008. The prices have since fallen to about $670 per metric ton.