Vendor Managed Inventory (VMI) & Hold Programs
Shaw Steel helps keep your material positioned and available through VMI and Hold Programs that support repeat usage, release flexibility, and better inventory control. Material can be purchased, staged, and released against your schedule so you reduce floor burden without losing supply visibility.
Why Choose VMI / Hold
- Can reduce carrying cost by shifting where material is held
- Helps support availability and smoother release planning
- Useful for repeat sizes, repeat parts, and ongoing programs
- Reduces day-to-day administrative friction on routine orders
- Supports traceability, consistency, and planned replenishment
How It Works
- 1. Review Usage: Forecast, usage, and material mix are reviewed.
- 2. Position Material: Steel is secured to your specification and staged accordingly.
- 3. Release as Needed: Material moves on a schedule or by call-off.
- 4. Track & Report: Usage and on-hand balance can be monitored over time.
Typical Program Snapshot
| Item | Typical Range | Notes |
|---|---|---|
| Term Length | 3–12 months | Often based on usage profile and forecast horizon |
| Ownership | Supplier or Customer | Can be structured in different commercial formats |
| Pricing | Fixed or Indexed | May follow fixed terms or market-based formulas |
| Release Cadence | Weekly / Monthly / Call-off | Usually aligned to actual production demand |
| Storage | Included / Billed | Depends on term, size, and overall program structure |
| Reporting | Monthly | May include consumption, balance, and release visibility |
VMI / Hold FAQs
Who owns the material while it is on hold?
Programs can be structured as supplier-owned until release or customer-owned depending on the commercial arrangement.
Can trigger levels vary by part or SKU?
Yes. Programs can be structured with different reorder points or release logic by item, family, or usage pattern.
How does pricing usually work?
Programs may be fixed for a defined term or tied to an indexed structure depending on the agreement and product type.
How often are inventory reports sent?
Monthly reporting is common, but cadence can often be adjusted based on how the program is managed.
Ready to Discuss a VMI or Hold Program?
Share your repeat sizes, usage pattern, release timing, and preferred structure, and Shaw Steel can help recommend a program that fits your operation.