Businesses are always looking for ways to optimize inventory, reduce costs, and enhance efficiency. One powerful strategy that has gained momentum is Vendor Managed Inventory (VMI). This solution shifts inventory management responsibility from the buyer to the supplier or a third-party inventory manager like Logistics Plus.
But what exactly is VMI, and how can it benefit your business? Let’s explore how Logistics Plus can help streamline vendor inventory management with its innovative supply chain solutions.
What is Vendor Managed Inventory (VMI)?
VMI is a supply chain strategy where suppliers or 3PLs take charge of managing and replenishing inventory based on real-time demand and usage data. This proactive approach reduces stockouts, minimizes excess inventory, and improves overall supply chain efficiency. With VMI, suppliers access a buyer’s inventory levels and sales data, allowing them to make informed replenishment decisions. This removes the guesswork from inventory management and fosters stronger collaboration between suppliers and buyers.
The Benefits of VMI
• Optimized Stock Levels – Real-time data analysis ensures optimal inventory levels, reducing overstocking and stockouts.
• Potential Cost Savings – Lower holding costs, reduced administrative burdens, and minimized stockouts lead to cost reductions.
• Strengthened Supplier-Buyer Relationships – Improved communication and collaboration foster long-term business partnerships.
• Better Visibility – Access to real-time demand data enhances forecasting accuracy and reduces disruptions.
• Enhanced Customer Satisfaction – Reliable stock availability ensures a seamless experience for end customers.
Industries That Benefit from VMI
Various industries can leverage VMI for streamlined operations, including:
• Retail: Keeping shelves stocked with fast-moving consumer goods.
• Manufacturing: Preventing parts shortages to maintain smooth production lines.
• Pharma & Healthcare: Ensuring the efficient management of critical medical supplies.
• Automotive: Supporting just-in-time inventory for essential components.
Challenges of VMI Implementation
Despite its advantages, VMI does have challenges, such as:
• Seamless Technology Integration: Effective VMI requires smooth data sharing, often needing ERP system investments.
• Trust and Transparency: Businesses must share sales data and rely on suppliers for inventory decisions.
• Vendor Reliability: Supplier performance is critical to the success of a VMI program.
Is VMI the Right Fit for Your Business?
If inventory inefficiencies, frequent stockouts, or high carrying costs are issues for your business, VMI could be the ideal solution. However, success depends on strong supplier partnerships and a commitment to data transparency.
How Logistics Plus Enhances VMI Implementation
Logistics Plus (LP) offers a suite of supply chain solutions designed to support VMI strategies:
• Advanced Inventory Management: LP’s sophisticated system leverages data analysis and technology to optimize inventory levels, track stock movements in real-time, and make informed storage and fulfillment decisions, ensuring efficient stock handling and distribution through our warehousing solutions.
• Technology-Driven Visibility: With MyLogisticsPlus™ and eWorldPlus™, businesses can access real-time inventory tracking, enabling seamless supplier-buyer communication.
• Efficient Fulfillment Services: LP’s tailored pick, pack, and ship solutions ensure vendor-managed inventory is handled quickly and accurately.
• Strategic Warehousing Locations: With nearly 10 million square feet of warehouse space across North America, LP optimizes inventory placement for faster transit times and improved efficiency.
Get Started with Logistics Plus
Vendor managed inventory isn’t just a strategy—it’s a transformative approach to supply chain management. By leveraging the right technology and partners, businesses can enhance efficiency, reduce costs, and strengthen supply chain relationships.
Ready to implement a VMI program? Start by assessing your inventory challenges and partnering with an experienced and capable 3PL like Logistics Plus to ensure a smooth transition. Contact us today to learn how we can help drive your VMI success.
Andrew Silver, host of The Freight Pod podcast, talks with Jim Berlin, CEO and founder of Logistics Plus. Jim discusses the company he founded in 1996 and has built into a global logistics powerhouse in more than 50 countries, with $600M in revenue, customers like GE and WeWork, and a global HQ in Erie, Pennsylvania’s Union Station. But success didn’t come without taking risks — and learning from failures. “I dive in with both feet without checking the depth of the water.”
In this episode, Jim and Andrew cover:
The journey of how Jim built his company from a small operation managing GE’s transportation into a global logistics powerhouse.
His biggest lessons, best leadership advice, and hiring mentality at Logistics Plus, which has more than 1,200 employees.
The biggest failure of his career — launching a cargo shipping business on the Great Lakes that nearly sank his entire company.
Stories of how simple gestures, out-of-the-box thinking, and creative problem-solving have sustained his career and the growth of Logistics Plus.
About The Freight Pod
The Freight Pod is a deep dive into the journeys of the transportation and logistics industry’s brightest minds and innovators. The show is hosted by Andrew Silver, former founder and CEO of MoLo Solutions, one of the fastest-growing freight brokerages in the industry. His guests will be CEOs, founders, executives, and leaders from some of the most successful freight brokerages, trucking companies, manufacturers, and technology companies that support this great industry. Andrew will interview his guests with a focus on their life and how they got to where they are today, unlocking the key ingredients that helped them develop into the leaders they are now. He will also bring to light the fascinating stories that helped mold and shape his experiences. Learn more and follow The Freight Pod at https://www.buzzsprout.com/2250931.
“The heavy industrial sector is thriving, and there is robust demand for logistics services, especially in supporting large-scale infrastructure projects, energy, and heavy industry,” says Bahadir Erdil, global projects director and Turkey managing director for Logistics Plus. Bahadir was interviewed for the latest Turkey Country Report in the January/February 2025 edition of Heavy Lift & Project Forwarding International magazine. Bahadir says Turkey is making impressive strides in several energy sectors. “The first nuclear power plant is nearing completion, and tenders for the second and third plants are expected soon. In addition to this, there has been steady investment in geothermal, wind, and solar energy, not only for domestic projects but also for exports.”
For the second consecutive year, Logistics Plus is proud to announce that it has been named the exclusive logistics member of the International Electric Maritime Association (IEMA). IEMA’s members and partners share a common goal: to facilitate collaboration and knowledge exchange to create a global network that will accelerate the adoption of electric propulsion, energy storage, and sustainable technologies in all maritime and inland water transportation.
In August, IEMA will host the Electric & Hybrid Marine Expo in Chicago, where Logistics Plus representatives will be key panel speakers. Additionally, the Logistics Plus team intends to hold a Q&A session on stage to discuss how to safely and efficiently ship lithium-ion batteries while considering sustainable practices.
About IEMA
IEMA connects, collaborates, unites, and advocates for the electric marine sector. We are the interface between the water and the land, cutting-edge vessel technology and port infrastructure. We connect and collaborate with for-profit companies, municipalities, government authorities, industry associations, and philanthropic institutions. Our mission is to affect a real and lasting decarbonization of the world’s waters.
Attention all Logistics Plus customers and eShipPlus™ users:
Thursday, January 30, 2025, the National Motor Freight Traffic Association, Inc. (NMFTA)™ announced the release of Docket 2025-1 which includes significant changes to the National Motor Freight Classification (NMFC®) system used by those who ship less-than-truckload (LTL) freight. Approximately 2,500 commodity groups will move to a new, 13-subprovision density scale.
Incorrectly classifying freight with incorrect NMFC classification codes can result in higher costs, making it essential for all NMFC users—carriers, shippers, and third-party logistics providers (3PLs)—to prepare for these changes by the go-live date: July 19, 2025.
On Monday, March 3, 2025, the Freight Classification Development Council (FCDC) will conduct a public meeting, held in conjunction with the NMFTA Spring Meeting in Clearwater Beach, FL, to discuss proposals and review feedback for the NMFC as listed in Docket 2025-1.
All NMFC users are encouraged to submit feedback which should include pertinent information relating to the transportation characteristics—density, handling, stowability, and liability—of the product(s) involved or relevant to packaging materials or methods in connection with proposed packaging amendments.
NMFC users can submit feedback for Docket 2025-1 in many ways:
1. Online: Complete the feedback form at nmfcchanges.com/docket-feedback.
2. Email: Send your feedback directly to fcdc@nmfta.org.
3. Mail: Send a letter to:
Freight Classification Development Council 1001 North Fairfax Street, Suite 600 Alexandria, VA 22314
4. In Person: Attend the FCDC meeting to be held in conjunction with the NMFTA Spring Meeting on March 3, 2025. If you wish to schedule an appearance at the meeting, please complete the “Intent to Attend” form here no less than three business days before the meeting.
Feedback submitted via form, email, or postal mail must be received by the FCDC no later than 5:00 pm ET, Tuesday, February 25, 2025. Learn more at https://info.nmfta.org/2025-nmfc-changes.
Rest assured, Logistics Plus will continue to closely monitor these changes, and we will do everything we can to proactively keep our customers informed of any potential impacts. If you have any questions, feel free to contact us at nadops@logisticsplus.com.
Logistics Plus Recognizes Six LTL Carriers for 2024 Awards
Pitt Ohio, Estes Express, Ward Transport, RIST Transport, and Lake Erie Trucking all receive honors.
ERIE, PA (February 6, 2025) – Logistics Plus, Inc. (LP), a global leader in transportation, logistics, and unique supply chain solutions, is recognizing six less-than-truckload (LTL) carriers for superior performance and partnership in 2024 as part of its annual scorecard review. The 2024 award recipients are as follows:
Pitt Ohio: Diamond Award. It’s the first time Pitt Ohio has received top honors and its second year receiving an award.
Estes Express: Titanium Award. It’s the seventh consecutive year Estes has earned an award.
Ward Transport & Logistics: Platinum Award. It’s the seventh time in eight years Ward has earned an award.
Dayton Freight: Gold Award. It’s the ninth consecutive year Dayton has earned an award (every year since the awards program began).
RIST Transport: Silver Award. It’s the fourth consecutive year RIST has earned an award.
Lake Erie Trucking: Bronze Award. It’s the second consecutive year Lake Erie Trucking has earned an award.
LP manages over a quarter million freight shipments annually as a recognized top freight brokerage firm. Services are delivered through the Logistics Plus proprietary eShipPlus™ and MyLogisticsPlus™ transportation management systems – online TMS platforms with built-in MyFreightTrends™ business intelligence dashboards. LP also offers shippers truckload, expedited, international freight forwarding, claims management, freight audit & payment, business intelligence, plus many other supply chain solutions.
Brief Audio Comments
Logistics Plus works with over 50 carriers to deliver LTL services in this concentrated transportation segment. The 2024 annual LTL carrier awards are based on an assessment of the following performance criteria:
Share of business volume and freight spend
Service, claims, and billing performance
Price competitiveness, speed, and coverage
Customer service and account representation
Partnership characteristics and ease of doing business
“This is the ninth year of our annual LTL awards program, and we once again proudly recognize six of our top partners for being the best-of-the-best,” said Scott Frederick, CMO and LTL Carrier Relations for Logistics Plus. “It was another competitive year, but Pitt, Estes, Ward, Dayton, RIST, and LET provided the best overall performance across our partnership ratings. Congratulations to all.”
The Logistics Plus North American Division (NAD) managed over a quarter million freight shipments in 2024.
About Logistics Plus, Inc.
Logistics Plus, Inc. (LP) is a 21st Century Logistics Company™ and a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and unique supply chain solutions. When the world changes, Logistics Plus® delivers. Founded in 1996, today LP has annual global sales of over $600M with more than 1,200 employees located in 50+ countries worldwide. LP is recognized as one of the fastest-growing privately-owned logistics companies, a top 3PL provider, a top 100 logistics company, a top freight brokerage and warehousing provider, and a great place to work. With a Passion For Excellence™, its employees put the PLUS in LOGISTICS by doing the big things properly, plus the countless little things that together ensure complete customer satisfaction and success. Learn more at logisticsplus.com or download our media & press kit.
