BC’s Vendor Managed Systems (VMIs)

Posted on August 01, 2023 by Boston Centerless

At Boston Centerless, we offer a wide range of Vendor Managed Inventory Systems (VMIs) that are tailored to meet the specific manufacturing needs of our customers. With a variety of VMIs to choose from, our team will help you determine the most effective inventory solution for your business - while minimizing inventory costs. We also have 3 strategically located distribution centers across the U.S. that can stock inventory for your specific requirements and material will be available for rapid shipment to your facility. In addition to round bar, Boston Centerless offers VMI programs for precision flats, precision wire and precision tube. When you order material from Boston Centerless, you can rest assured that you will receive the right material at the right time. Our VMI Program's include Kanban and JIT, Blanket Release, Hold for Release, Dock to Stock, Dock to Line (available in New England), and Product on Consignment. Below are more details on three of our common VMIs.

Kanban and JIT: oftentimes customers wish to have limited inventory to warehouse and manage, yet need material readily available – in some cases next day delivery. For these customers, Kanban and JIT is an attractive option. Boston Centerless pre-grinds material based on customer forecasts and stores it in our distribution centers. The product is delivered to the customer as it is needed with minimal lead time. This VMI program optimizes lead times, reduces the warehousing footprint and inventory cost for customers, and enables a Just-in-Time manufacturing approach that is very flexible and responsive. A Kanban / JIT system is often utilized by companies that need large volumes of the same material throughout the year.
Blanket Release: with this VMI system, a customer places an order in advance based on future demand forecasts to lock-in the pricing and secure the material. The Blanket Release VMI system is different from Kanban and JIT, in that Boston Centerless does not pre-grind the material in advance and store the finished material in a distribution center. Instead, we have fixed release dates that we work against to grind the material so it is available per the agreed upon schedule. One of the benefits of a Blanket Release VMI program is that the contract pricing is locked-in for a period of time, and the delivery timing for Blanket Release is attractive but not quite as rapid as JIT.
Hold for Release: this VMI system is a variation of the Blanket Release. With Hold for Release, customers still place the order in advance and Boston Centerless works the machining into the schedule without pre-grinding. The key difference is that Hold for Release is a singular, one-time order whereas Blanket Release is typically multiple orders over a fixed time period.

Our Strategically Located Distribution Centers Cut Lead Times

BC currently has three national distribution centers located strategically across the U.S.: Woburn, MA; Fort Wayne, IN; and Minneapolis, MN. Our VMI solutions leverage these locations to minimize material lead times. Our customers are able to draw on finished goods from our distribution centers, and we can deliver these materials quickly based on proximity. With multiple locations across the U.S., we can be nimble and responsive to our customers’ needs as demand fluctuates.

Would your team benefit from the reliability of our Vendor Managed Inventory systems?

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Which VMI Program is Right for Your Business?

Given the various options, how do OEMs know which VMI system is best for their application? The simple answer is that it depends. The right solution depends on the specifics of each manufacturing scenario and no VMI system should be put into place without proper planning. Additionally, companies should team up with a manufacturing and distribution partner, like Boston Centerless, that offers a variety of solutions across the supply chain. We are a fully integrated product and service provider that can assist you with material selection, procurement, precision grinding, material testing and validation, customized VMI programs, and supply chain management. Our team is able to help customers identify the pros and cons of various supply chain options to ensure the best overall manufacturing solution is selected. That is just one of the reasons why customers rely on us as their one-stop shop.

About Boston Centerless

Boston Centerless provides solutions that enhance our customers' manufacturing processes. With 65 years of experience with precision grinding, we grind the tightest tolerances in the industry. We have proven experience with an extensive range of materials, and our manufacturing solutions include:

Contact us today at (781) 994-5000 to see how we can help with your next precision bar material project, or request a quote here.

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