VMI means efficient inventory management and financial flexibility. SUUS and Signify cooperation

One of the key elements of the production chain is effective inventory and component supply management. Can proper logistics processes also reduce costs and limit capital freeze? Our cooperation in the VMI model with Signify, a global leader in the lighting industry, shows that all these benefits can be achieved.

In Signify’s supply chain, we rely on VMI (Vendor Managed Inventory). In this model, the stock of components is stored in a bonded warehouse located at an optimal distance from the factory. Until the components are taken into production, the ownership remains with the vendor. Signify does not bear direct costs related to the handling of the goods. It uses the inventory according to its needs, purchasing only as much as is currently necessary. Payment for the components, as well as customs and tax obligations, is postponed until the items leave the bonded warehouse, which increases the manufacturer’s financial flexibility.

In cooperation with Signify, we provide:

• sea, air, and rail transport from suppliers in China, and road transport from European suppliers,
• transport of containers from the port to warehouses in Poznań and Gdańsk,
• inventory management based on the WMS system,
• full warehouse services – receiving and releasing goods, storage in the bonded warehouse, order picking,
• comprehensive customs services,
• daily just-in-time deliveries to Signify factories in Piła and Kętrzyn using full-truckload and less-than-truckload road transport,
• system integration between us, the client, and component suppliers.

VMI is not just the flow of goods but also of information. Thanks to system integration among all supply chain partners, once production plans are defined:

• the logistics operator knows the volume to deliver to the factory at a given time,
• the component supplier knows when to start producing new materials to ensure continuity,
• the manufacturer has full visibility into the supply chain and knows the status of each component at every stage of the process.