Is it time to let someone else manage your packaging inventory?
Vendor-managed inventory (VMI) offers a smarter approach to packaging supply. It shifts responsibility for stock control to your supplier, meaning you benefit from timely deliveries, fewer errors, and improved operational flow without lifting a finger.
When packaging stock becomes a recurring issue, whether it’s frequent shortages, over-ordering, or simply not knowing what you have on hand, it can drain time, money and resources. Many businesses accept this as part of the day-to-day, but it doesn’t have to be that way.
This guide explores seven common signs that it’s time to rethink how you manage your packaging. If these sound familiar, we can help you regain control, space, and peace of mind with a tailored vendor-managed solution.
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What is a vendor-managed inventory?
Vendor-managed inventory is precisely what it sounds like: your supplier manages your packaging inventory. This includes holding stock, monitoring usage patterns, forecasting demand, and ensuring the right materials arrive at your facility when needed.
Under a VMI system, the packaging supplier assumes full responsibility for stock levels. They typically hold inventory offsite, often operating on a Just-in-Time (JIT) model where packaging is delivered in smaller, more frequent batches. This means you reduce the stock held on your premises while maintaining operational continuity.
The benefits go beyond convenience. With your supplier actively planning demand, you can better prepare for seasonal peaks, product launches, or unexpected surges. Additionally, it’s easier to avoid wastage caused by obsolete or damaged packaging. A well-run VMI programme can often reduce storage costs, improve lead times, and create a leaner, more responsive supply chain.
If packaging is becoming a hassle, or your business is growing and you need better control, VMI may be the competitive advantage your company has been looking for.
Packaging shortages
Frequent packaging shortages aren’t just inconvenient; they can have profound implications for your production line and brand reputation. When the correct box or protective material isn’t available, dispatches get delayed and products go unfulfilled. In some cases, operations may even halt entirely until supplies are replenished.
Running out of stock often happens because of poor forecasting or time-consuming manual processes, making it hard to react quickly to low inventory levels. Packaging needs can easily be overlooked without proper visibility and planning until it’s too late.
A VMI programme eliminates this risk. Your supplier will monitor your usage data and keep pre-agreed stock levels on hand, protecting you from supply gaps. You benefit from shorter lead times and consistent availability as inventory is managed externally and replenished based on real-time demand. It’s one less thing for your team to worry about, and one more way to maintain momentum in your operations.
Stock descrepancies
Does your packaging usage consistently fail to match what’s being purchased or received? These inconsistencies can point to deeper issues within your inventory management process. They might be due to miscounts, damage, incorrect usage, or outdated stock tracking systems.
While occasional variance is normal, consistent mismatches between purchased and used packaging can quickly escalate. If your current system doesn’t give you a clear view of what’s coming in and being used, you’re essentially operating blind.
One of the strengths of a vendor-managed setup is transparency. Your supplier will track what’s being used and how frequently, providing regular reports and analytics. This insight allows you to spot irregularities early on – whether packaging goes missing, is used inefficiently, or is piling up in storage.
These reports also support better decision-making. For example, if specific packaging lines are being ordered excessively, they can be reviewed, reconfigured or phased out. This level of control helps you reduce waste and lower overall costs.
Low stock visibility
One of the most common issues businesses face is simply not knowing how much packaging they have. When packaging is stored in multiple areas or managed by different teams, losing track is easy.
Lack of visibility leads to a cascade of inefficiencies, but with VMI, your supplier assumes responsibility for monitoring and managing your inventory levels. You’ll receive regular reports detailing usage patterns, order history, and current stock. This gives you insight that would be time-consuming and expensive to achieve in-house. These reports can even highlight areas where lines can be consolidated or materials streamlined to improve efficiency.
A clear picture of your packaging inventory is about making informed decisions that benefit your supply chain.
Manually counting stock
If your team spends hours walking around the warehouse trying to count packaging supplies, it’s a sign that your inventory system isn’t working for you. Manual stock checks are not only inefficient, but they are also prone to errors.
Beyond the immediate burden or time, this process slows down everything from procurement to planning, and when demand suddenly spikes or a rush order comes in, relying on yesterday’s headcount can put your operations at risk.
One of VMI’s core benefits is that it removes the need for manual tracking. Stock levels are monitored automatically, and your supplier ensures timely replenishment based on actual usage. This frees your team to focus on production, customer service, or innovation tasks.
Overstocking
When in doubt, many businesses are overcautious by overordering their packaging. Overstocking can lead to problems, such as increased storage costs, wasted materials, or cash flow tied up in unused inventory.
Packaging doesn’t last forever; boxes can get crushed, dusty, damp, or damaged. In fast-moving sectors, you may end up packaging products you no longer manufacture. Overstocking occupies valuable space that could be used for finished goods or production.
A VMI strategy prevents these issues by aligning stock levels with usage patterns. Your supplier uses historical data, order trends, and seasonal fluctuations to forecast demand and maintain the right amount of packaging at any given time, keeping stock lean without sacrificing availability.
Summary
Managing packaging stock in-house can be a hidden drain on your resources, leading to running out of stock frequently, overordering, wasted materials, and lost time. Vendor-managed inventory (VMI) offers an efficient alternative by shifting the responsibility of stock planning, holding, and replenishment to your packaging supplier.
With VMI, you gain more control with less effort, improving operational flow, cutting storage costs, and freeing up valuable time and space. If any of these challenges sound familiar, implementing a VMI service could be the smartest next step for your packaging strategy.
At Suttons, we specialise in tailored VMI solutions that streamline your packaging supply and boost efficiency. Contact our expert team today for a no-obligation chat about how we can support your business with more innovative packaging management.
