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Swagelok Michigan | Toledo

Your Authorized Swagelok Sales and Service Center

Vendor Managed Inventory VMI

Vendor Managed Inventory

Vendor Managed Inventory (VMI)

  • Inventory based on actual annual usage
  • Service, product knowledge and factory trained technical support
  • Eliminates excess inventory
  • Organized, user friendly cabinets
  • Labeled with pictures, part numbers and descriptions
  • Parts are kept ready for use by reinstalling nuts and ferrules on items returned from the field, and assuring they are kept in the proper bin
  • Reduces procurement costs
  • Eliminates manpower to check, order and maintain bins
  • Eliminates downtime in the field
  • Eliminates receiving, shipping and handling costs

Many of our customers have learned that one of our most important value-added services is our capability in the area of inventory management. Our sales team has years of experience in helping our customers to organize and control their inventory of Swagelok fluid system components, so that inventory will best serve each customers own unique requirements.

Customer A:

Customer A had an inventory of Stainless Steel fittings and valves totaling $11,700.  There were numerous items that had Qty. 0 inventory.  This is typical of an unmanaged inventory.  Items that are needed are not replenished quick enough, and low usage parts are ordered in quantities that are too large.  It was determined that there was an excess of $2500 of inventory.  Initial order was for $2719.  However, credit was issued for excess inventory.  Now, Customer A has a lean and efficient inventory of Swagelok parts that are specific to their needs and usage.  They now have high usage parts in stock without increasing their total inventory dollars.

Customer B:

Customer B had no inventory prior to setting up Swagelok Vendor Managed Inventory. Therefore, implementing this service had an associated cost. The initial stock order was for $19,871. The Supervisors recognized that this investment in risk management has more than paid off and they will not consider losing control of their inventory again.  It is difficult to estimate the cost of downtime as it depends on the equipment affected. A plant wide outage would cost $185,500/hr.  To date, Customer B has not experienced downtime as a result of Swagelok products, performance or availability. Techs are not wasting time on the computer trying to locate parts at $50/hr.  Simple jobs can be completed without time consuming materials gathering and planning.  Daily ordering has been replaced by monthly stock replenishment without an order being placed. There are no receiving costs, handling costs from main warehouse to point of use or shipping costs.  All charges are applied against on P.O.# thus, eliminating procurement.

Contact us to learn more