Benefits of the ICS VMI program

Actual sanitary requirements and unforeseen risks in supply chains, have forced our customers located in Mexico, to change the way raw materials and final product importation is done. 

The environment in which companies daily transport and plan their chain supply involves advanced techniques of packaging engineering, production, and technology in combination with continuous improvement of cost-savings by carrying out international operations between the US and Mexico border.

Given this fact, organizations must be efficient in their assets and inventories as an initial part of the industrialization process; by giving the collaborators, key tools to automate their processes without losing resistance in industrial cardboard, wood, or plastic packaging.

The International Development Bank states that logistics and supply chain costs represent between 18% and 35% of the value of the final product, in the member countries of the Organization for Economic Cooperation and Development (OECD). However, costs in Latin America range from 50% to 100%.

Not giving importance to maintaining a balanced supply chain implies operating expenses coupled with transportation and warehouse costs in Mexico.

ICS VMI Group offers comprehensive services focused on packaging production with other components deliveries through the Managed Vendor Inventory (VMI) Program. Where the maintaining inventories in Mexico cost with daily deliveries are combined with delivering packaging materials costs that, due to their volume, are received on a daily basis.

Benefits VMI program ICS
Benefits of the ICS VMI program

Another substantial benefit attributed to the VMI program implementation is that deliveries of different materials, from different suppliers, can be manually assembled in ICS VMI Group to combine different products in the same delivery unit. This unit is delivered to the final customer,  bringing efficiency in the manufacturer’s production line.

The VMI program, with its US-Mexican warehouses strategically located in industrial parks and large transport fleet, makes processes efficient, not only in incoming logistics but also inverse logistics of the customer’s recyclable materials.

Contact us to talk about the different programs we can offer you. As an added value, we support all-size companies in prototype design, importation supplies, sorting, assembly, reworks, and sorting with a strategic infrastructure over different parts of the city.

ICS VMI Group is your ally in providing innovative solutions and ideas for your packaging and logistics needs in Mexico.