The primary benefit of Amfas' VMI is that WE are responsible for supplying our customers when the items are needed. This removes the need for you to have significant safety stocks. Lower inventories for our customers have lead to significant cost reductions and superior use of working capital.
Amfas' VMI customers also benefit from reduced transaction costs. Because we receive data and not purchase orders, your materials management department can spend less time on calculating and producing purchase orders. In addition, the need for purchase order corrections and reconciliation is removed which further reduces purchasing costs.
Cost savings can also be found in reduced warehouse costs. Lower inventories can reduce the need for warehouse space and warehouse resources. Amfas maintains warehousing locations in Southern California, Central U.S. (Memphis), and Central Mexico to insure the availability of product for our customers. Many products are not practical to ship by air freight and the alternative surface shipment methods require weeks to ship globally. Amfas will warehouse inventory for customers with minimal commitments for the ongoing business.
We also work on consigned inventory terms when the customer prefers immediate access to their goods supplied by us.