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Vendor Managed Inventory - Consigment

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Free up cash flow and improve efficiency

You recognize that an integrated supply-chain solution makes sense for your organization. The question is where to start and how to start quickly without getting ahead of yourself. The answer is Avnet and our vendor managed inventory (VMI), also known as consignment, program. We’ll show you the benefits, including ease of implementation, so you can test the waters and decide if a more comprehensive solution is right for you.

The program is simple to implement. Avnet would retain ownership of devices stocked at your location until you consumed them in your production process. Through a series of electronic communications, Avnet would monitor your forecasts, manage pipelines to refresh the inventory and generate frequency based invoices for the devices you’ve used. Avnet will assign an experience analyst to manage the program and we’ll review performance and status reports with you on a frequent basis.

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Avnet’s VMI tools provide a lower total cost of

  • Reduces asset costs by shifting ownership of product to Avnet
  • Ownership transfers at time of consumption resulting in higher level of working capital available
  • Reduces inventory investment
  • Optimizes cash-to-cash cycle time
  • Reduces transaction costs
Vendor managed inventory

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By transferring your ownership of inventory to Avnet through VMI, we assume the responsibility of your raw materials to point of consumption. As a result, your balance sheet will become more powerful and you will have more working capital to operate your business.

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