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Inventory Supply Options

Vendor Managed Inventory

Rusco Packaging offers creative inventory models, such as Vendor Managed Inventory (VMI), to help your business processes. VMI is a business model in which customers provide information of the products that they need and Rusco Packaging takes the responsibility of maintaining the agreed inventory of the material at the customers location. Rusco Packaging replenishes the inventory at the customers location once a month.

Consignment

Rusco Packaging offers qualified customers a consignment option to meet their packaging supply requirements. This program is very similar to Vendor Managed Inventory. The difference is the product is invoiced once used.

Rusco Packaging will deliver a pre-determined amount of supplies on the initial shipment. This shipment will be recorded as the beginning supply balance for each item on consignment. The customer will designate a specific area for the supplies and pull from the consigned stock as needed. Once a product has been removed from the designated area, it will be considered billable. A Rusco Representative will be assigned for inventory control. This person will provided remaining on hand counts on the third week of every month. Once the counts have been confirmed a billing acknowledgement will be provided for invoicing.

Stock replenishment will occur when stock levels are such that it would not be a burden for the customer to accept additioanl inventory. Inventory will be replenished to the pre-dtermined amount. The inventory of each item will be targeted as a 90 day supply to the nearest pallet quantity. Products not consumed in that 90 day period will be invoiced in full and replenishment of supplies will resume again once inventory levels have been reduced.

Here are a few key benefits of Consignment

  • Pay once the product is used, not when it is delivered
  • Consolidated invoicing
  • Improved cash flow
  • Reduces carrying costs
  • Customizable agreements to meet your needs