What Is Vendor Managed Inventory?
Vendor Managed Inventory is a supply chain arrangement where Grand Rapids Label takes an active role in managing your label inventory on your behalf. Rather than placing individual orders each time your stock runs low, we work with you upfront to understand your usage rates, production schedules, and inventory requirements.
How Does the VMI Process Work?
Usage Analysis
We start by working closely with your team to understand your label consumption patterns, production volumes, and potential seasonal fluctuations. This baseline shapes the entire program.
Large Volume Production Runs
Instead of producing labels in small batches for each order, we run high volume production jobs. Running labels in volume signifcantly reduces per unit cost and eliminates the setup and press time associated with frequent, smaller runs.
Storage at Our Facility
The converted inventory is stored at Grand Rapids Label's facility in controlled conditions. Your are stored on shelf safely until your next release window.
Scheduled Releases
Labels are released on a cadence that aligns with your production schedule. Because the material is already converted, labels can be at your facility in as little as 24 to 48 hours.
Proactive Inventory Monitoring
We proactively manage reorder triggers so that your program stays ahead of demand. You get transparency into inventory levels without having to track it yourself. Account coordinator Zach Pirone, who frequently manages VMI programs for several of GRLabel's clients says:
"In a VMI program, we produce your labels in a single, large volume run and store the excess inventory right here at our facility. When you need labels, we release them on a scheduled basis and your labels are already converted and ready to ship. It's essentially having a dedicated label warehouse on your behalf, without the overhead of managing it yourself."
Primary Benefits of VMI
The benefits of a VMI program extend well beyond simply having labels on hand. For manufacturers in automotive, industrial, food, and other high volume markets, the downstream value is significant.
Reduced Lead Times
Standard label orders carry production lead times span several weeks depending on material and press availability. With VMI, that lead time is essentially eliminated for scheduled releases. The labels are done and just need to ship.
Lower Cost Per Label
Press setup, makeready, and changeover costs are fixed expenses that get spread across every label in a run. The more labels in a run, the lower the cost per unit. VMI allows us to produce at the optimal volume for your program, which frequently results in meaningful cost savings compared to placing multiple smaller orders throughout the year.
Improved Supply Chain Predictability
For high volume manufacturers, supply chain unpredictability is one of the biggest operational risks. VMI removes the label piece of that equation entirely. You know what's on hand, when releases are scheduled, and that your supply is secure regardless of what's happening in the broader supply chain.
Free Up Internal Resources
Managing label inventory internally means someone on your team is tracking stock levels, placing purchase orders, following up on deliveries, and chasing down shortages. VMI transfers that administrative burden to us. Your team gets time back, and the risk of human error in manual inventory management goes with it.
Is your company ready for VMI?
VMI is particularly well suited for organizations that meet one or more of the following criteria:
Companies with multiple label SKUs across a product line also benefit significantly. Rather than tracking inventory levels across a dozen or more label part numbers, VMI consolidates that complexity into a managed program. We track it, you get labels when you need them.
Companies with seasonal or cyclical demand can also use VMI strategically, pre building inventory ahead of peak periods and releasing on a schedule that aligns with production ramps without scrambling for capacity at the worst possible time.
Companies that go through a significant number of labels annually and are looking to achieve a better cost per label price.
Ready to Eliminate Label Shortages?
If you're evaluating whether VMI makes sense for your operation, or simply want to understand what the program would look like for your specific label program, click here to be connected with a GRLabel sales engineer!