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February, 24, 2010

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!

Even though the steel industry has begun to see signs of economic recovery, Ohio’s unemployment still hovers around 11 percent. We support the Obama Administration’s goal of doubling U.S. exports in the next five years to increase employment. But to do so, President Obama must address one of the biggest barriers to that goal: China’s undervalued currency. China undervalues the yuan by as much as 40 percent, giving its exports an unfair advantage over U.S. products in markets around the world.

In addition, the administration cannot keep imposing new regulations that stifle U.S. competitiveness and cost valuable jobs, such as the Environmental Protection Agency’s plan to regulate emissions from industrial sources under the Clean Air Act. New regulations like these continue to cripple our manufacturing base by discouraging new investment just as we are trying to come out of this recession.

Ohio is the heartland of U.S. manufacturing, including being the second highest state in steel production, generating $5.15 billion in value-added output. Let’s work together to increase exports by minimizing costly new regulations and taking action against governments, such as China, who don’t play by the rules.

- Thomas J. Gibson, Washington, D.C.

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