What is a Vendor Managed Service?
A Vendor Managed Service (VMS) is a vendor that provides a select group of services that are engineered to reduce cost, maximize facility performance and identify potential risks of current company products and processes. Sourcing a vendor to manage designated programs within your facility can bring peace of mind as well as directly provide industry leading knowledge and solutions directly to your production floor.
Vendor Managed Service – Procurement Optimization
Over this past year, the weight of the global pandemic has crippled economies and caused once flourishing industries to plummet. Perhaps no industry has felt this world wide impact more than those in manufacturing. The need for identifying opportunities for cost reductions and the ability to efficiently maximize profit margins has potentially never been more of a core focus. In a VMS, it is expected that the vendor analyzes and identifies areas and processes throughout one’s facility that can be improved financially and then pitch those improvements to the facilities procurement team. This ultimately will allow the facility to cut unneeded inventory cost by optimizing their purchasing methods. Once optimized the procurement team should see a boost in profit levels and catapult those newly indefited finances back to the facilities bottom line.
How Can I Go Greener with a Vendor Managed Service?
The need for companies to go green and achieve ISO certifications has skyrocketed over the past decade. Companies are finding out that this “need” is rapidly becoming a global necessity. A necessity that requires companies to ultimately reduce their carbon footprint and begin sprinting towards a Zero Waste culture. A Zero waste culture focuses on the conservation of all resources by means of responsible production,consumption, reuse, and recovery of products, packaging, and materials without burning and with no discharges to land water or air that threaten the environment. A VMS geared towards environmental improvement can not only boost the facilities sustainability by providing countless process improvements but also check off some of those required boxes needed to create an efficient and healthy Zero Waste culture company wide. Some of these process improvements can eliminate the need for a waste manifest by providing detailed monthly sustainability reporting. These reports showcase how many pounds of raw material and gallons of liquids that the VMS was able to divert from landfill or incineration on the companies behalf. On the sustainability side, the vendor can offer a wide variety of reusable products that are recycled internally and reused. This would eliminate the need for any and all disposable methods that are represented within that scope.
Managing the Tool Crib with a Vendor Managed Service
Many of the world’s largest manufacturing companies have identified and experienced the benefits of implementing a Tool Crib Management program. Choosing a VMS that offers a Tool Crib Management service can prove essential in optimizing certain materials and products that are widely utilized within the company’s facility. The addition of a VMS to take over your facilities tool crib can also reduce the facilities liability on methods in which materials are being brought in as well as how those materials are being disposed of once they leave the facility. One of the last things a company wants is to be cited for improper handling and disposal of certain hazardous and non hazardous materials. Improper handling of these materials can lead to costly citations and more importantly a glowing negative impact on the environment. The VMS addresses this concern by providing peace of mind in offering essential cradle to grave protection on all vendor owned and managed material that is on site.
Through the global pandemic companies have been forced to dig deep and reach a new level of creativity to overcome certain obstacles. Most of which have no set action plan or company documented solution. One of these glaring obstacles the manufacturing industry has identified and faced has been feeling the stress of global supply chain distributions. Certain sourced materials are essential in maintaining a safe and steady profitable pace on the production floor. By utilizing a VMS Tool Crib Management program you outsource that responsibility to the vendor. The VMS is able to address this concern by sourcing and stocking the site’s tool crib with recycled and reusable vendor owned products that can be laundered and used time and time again. With the VMS directly providing these reusable products to the company’s tool crib it has been proven to reduce the need to source any additional disposable material that is within the vendor’s scope. Thus absorbing a portion of the companies global supply chain issue and impact that has been felt industry wide over the course of the pandemic. Overall, an efficient Tool Crib Management program will provide a more hands off approach while simultaneously boosting the sustainable future for each facility and its team members.
Closed Loop Recycling has 4 laundering centers situated conveniently throughout the Midwest and Southeast portion of the United States. With Customer Service Reps leaving out from these hubs each week, CLR is able to offer vendor managed service at satellite recycling stations situated all around customer facilities. This vendor managed service comes at no extra charge and saves some of our customers up to 10 hours per week! Reach out and see if CLR can offer vendor managed service for absorbents, rags and PPE in your area.