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Case Study: Streamlining Inventory with Vendor Managed Solutions

The Challenge

A regional grocery store chain faced operational challenges due to difficulties in predicting label needs for their extensive range of SKUs. The unpredictability led to rush fees, potential delays, and operational inefficiencies.

The Solution

AutoMate devised a Vendor Managed Inventory (VMI) plan to decouple production from delivery, providing a strategic solution to the client’s challenges. The VMI plan allowed AutoMate to take responsibility for monitoring label inventory levels and proactively managing restocking, ensuring that the client always had an optimal supply of labels without incurring rush fees or facing production delays.

The Result

The VMI plan successfully insulated the client from planning errors, preventing potential delays and break-in fees. The VMI plan also strategically separated production from delivery, providing a proactive approach to label inventory management. The new process enabled more efficient production runs, reducing delays and associated costs.