Most manufacturing requires some level of warehousing, whether it be for raw materials, work-in-process, or finished products. Maintaining and managing a large warehouse, however, adds significant costs. Vendor-managed inventory and warehousing, when done right, is one way you can reduce those costs without negatively impacting your business.
Automotive is just one industry example that has long used just-in-time inventory and management systems. These strategies align raw materials or component orders from suppliers directly with production schedules to increase efficiency and reduce waste. For example, if your sheet metal fabricator makes your product housing, the parts would arrive at your facility just as you were building the lot requiring those specific components. This reduces the need to store excess inventory and the amount of warehouse space needed.
Benefits Of Vendor Warehousing And Distribution
Recent supply chain issues have created concerns with just-in-time logistics, especially when products must come through international ports. Returning to stockpiling components increases upfront material, warehousing space, and management costs.
Choosing a trusted partner with a proven record can compress your supply chain size and time. If your vendor can act as a distribution center, dropshipping products to locations around the country, the benefits can be exponential. Benefits of vendor managed inventory, warehousing, and distribution include:
- Reduced costs – cost savings through time savings and reduced warehouse management and distribution costs
- Reduced capital expenditures – no need to purchase warehouse space
- Increased efficiency – experts keep processes flowing smoothly, and products arrive at an agreed-upon time
- Reduced product damage – direct shipping reduces the transportation time and movement, reducing the chances of damage
- Supply chain flexibility – react to market shifts
- Supply chain stability – reduce out of stocks
- Improved allocation of resources – focus on your core business activities
- Increased customer satisfaction – meet delivery agreements and keep customers happy
Working With Tusco Manufacturing
Delivering a successful, well-designed, and expertly produced sheet metal product is just the beginning. At Tusco, we offer complete assembly, warehouse services, and shipping. In fact, we can help maintain your inventory. We provide regular inventory reports to fully support your strategy and program execution. We also drop-ship throughout the US, Canada, and Mexico.
We make sure you get your shipments when you need them.
We offer same-day order processing and shipping, routinely providing the electronic shipment tracking details to ensure accountability through product delivery. UPS and FedEx ship small parcels, and various carriers assist with large programs.
Packing, processing, loading, unloading, delivering, and everything in between — Tusco works with trusted partners to execute this as efficiently and effectively as possible.
Do you want to learn more about our inventory storage and warehouse services? Contact Tusco today to start mobilizing on your next project at 716-250-7813.