---
title: 3 Industries That Should Embrace VMI and JIT
description: Managing inventory is often a business’s trickiest balancing act. Just in Time (JIT) and Vendor Managed Inventory (VMI) allow for streamlined inventory management and can help your company increase efficiency.
image: https://blog.swpackagingsolutions.com/hubfs/VP_Blog_960x480_EmbraceVMI.jpg
---

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# Market Insights

# 3 Industries That Should Embrace VMI and JIT

 September 30, 2020

![VP_Blog_960x480_EmbraceVMI](https://blog.swpackagingsolutions.com/hs-fs/hubfs/VP_Blog_960x480_EmbraceVMI.jpg?width=960&height=480&name=VP_Blog_960x480_EmbraceVMI.jpg)

## Why VMI and JIT Programs Are Right for Food Industry, 3PL and Manufacturing Inventory Management Needs

Managing inventory is often a business’s trickiest balancing act. Too little on hand and customers are upset by delayed shipping, resulting in lost sales. If you overcorrect and hold too much inventory, your cash flow can dry up as you hold already-paid-for products at your expense.

[Just in Time (JIT) and Vendor Managed Inventory (VMI)](https://blog.swpackagingsolutions.com/4-signs-you-should-consider-vendor-managed-inventory-vmi?_ga=2.67342033.1748080282.1601325548-572352072.1601325548) allow for streamlined inventory management and can help your company increase efficiency. Before we look at how JIT and VMI can help the food industry, manufacturing industry and third-party logistics (3PL) companies, we will briefly explain what they are.

### **What are JIT and VMI programs?** 

Vendor Managed Inventory (VMI) is a program in which a company partners with an outside partner to handle shipping forecasting and manage order volumes. Smurfit Westrock Packaging Solution’s VMI program enhances efficiency and streamlines supply-chain costs by analyzing usage, floor stock and lead-times. Our Just In Time (JIT) program helps companies properly utilize their space and cash flow by holding their inventory over a 90-day period and delivering it when needed.

Utilizing a VMI and/or a JIT program allows you to direct capital to other business areas while providing peace of mind that experts are managing your inventory efficiently.

### **Inventory Management for Food Industry Companies in a Growing Market**

It’s an understatement that COVID-19 has impacted consumers’ purchasing habits, and the food industry might be feeling the most considerable shift. [In a recent article, The New York Times](https://www.nytimes.com/2020/09/08/dining/grocery-shopping-coronavirus.html) noted that Americans have bucked their established purchasing habits and are now putting more of their monthly budget toward supermarkets than restaurants. Further, online U.S. grocery sales that only earned $1.2 billion in August 2019 were up to $7.2 billion by June of this year.

Not only are consumers purchasing more food, but they’re adopting new methods of doing so. This shift to the kitchen means that companies need to adapt quickly to recent behavioral trends or risk losing out on the surge. 

Embracing VMI and JIT can help your enterprise navigate the new frontier of logistics without sacrificing valuable capital and time better spent on growing your company. Inventory management  for food industry companies can seem daunting — that’s where [we come in](https://www.victorypackaging.com/en/home). Vendor Managed Inventory allows you to handle the fluctuation that comes from not only a changing marketplace but also the inherent shifts in seasonality. 

It’s a delicate balance to optimize inventory for a growing consumer base. Still, a Just In Time inventory system managed by the vendor can help you make sure that valuable inventory isn’t wasting away on your shelves and is delivered to you as you need it. 

### **Maximizing Your Manufacturing Packaging and Supply Chain Solutions**

Toyota pioneered JIT, so it makes sense that manufacturing companies would want to utilize the advantages of Just In Time production in their large-scale operations. When dealing with high-cost inventory, you simply don’t have the money or space to waste on idle supply. A streamlined inventory management process ensures higher efficiency. 

A softened manufacturing market means that any disorganization can only exacerbate the ongoing downturn from COVID-19. Simply put: there is little margin for error as manufacturers look to grow out of the hole from the first half of 2020. Strong manufacturing inventory management is crucial.

[In a mid-year report](https://www2.deloitte.com/us/en/pages/energy-and-resources/articles/manufacturing-industry-outlook.html), Deloitte identified two subtrends that manufacturers will likely use to “Recover and Thrive” post-pandemic: diversify supply and production and “implement digital supply network solutions to reduce supply-side risks.” These subtrends align with Smurfit Westrock Packaging Solution's ability to optimize efficiency and costs across our customers’ entire packaging supply chain. 

We can help you shore up manufacturing packaging supply and inventory management across a high amount of SKUs so that your company can focus on producing valuable products, equipment and goods.

### **Creating Added Management Value as a 3PL Provider**

Vendor Monitored Inventory and Just In Time programs for Third-party logistics (3PL) companies might seem unnecessary. Still, by offering a VMI model, you provide a value add to your clients while improving your shipping and storage operations.

If you’re a third-party logistics partner, you already know how important it is to maintain your clients’ organization and efficiency. You’re working in large quantities across multiple companies, and even industries, and your packaging needs are likely to include considerable variety. 

A VMI model can help your clients run smoothly, reduce your holding costs and free up valuable warehouse space for only products ready to move. Managing supply orders for your clients is a natural progression for 3PLs and complements the suite of offerings already on the table, making you a more attractive partner for your clients while maximizing your workflow. 

[Smurfit Westrock Packaging Solution's VMI and JIT offerings](https://www.victorypackaging.com/en/home?__hstc=45788219.ef9fda0c33dfaada8966302ed1ed03e5.1736464037782.1736464037782.1736464037782.1&__hssc=45788219.1.1736464037783&__hsfp=424417210) ensure that your packaging needs are always aligned with your shipping flow to make fulfillment efficient and straightforward. 

**Are you ready to enhance efficiency and optimize costs through JIT or VMI programs? Our packaging solution experts are prepared to help. Too little cash flow. Too much inventory. Product damage. Misused resources.** [**Let’s talk**](https://www.victorypackaging.com/en/about/contact) **about your brand’s inventory challenges and design a program to solve them.**

 Topics: [efulfillment](https://blog.swpackagingsolutions.com/topic/efulfillment), [JIT](https://blog.swpackagingsolutions.com/topic/jit), [VMI](https://blog.swpackagingsolutions.com/topic/vmi)

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