Inventory management and vendors

How well your vendors are helping you achieve the goal of effective inventory management and which of these methods produces the best results.
Qualifying each vendor's inconsistency in lead times is very important. In order to maintain superior customer service, you must maintain more safety stock (i.e. reserve inventory) to compensate for greater inconsistencies in vendor lead times. This additional safety stock raises the average value of stock inventory and results in decreased corporate profitability.
Determine if the problems:
* Had a negative effect on the service you provided to your customers.
* Caused you to maintain additional inventory to maintain a satisfactory customer service level.
* Increased your operating costs.
The best way to improve your operations, reduce your operating costs, and improve customer service is to closely monitor the problems produced by your current operations. Applying the vendor satisfaction analysis to supplier shipments is a good way to identify ways to improve your replenishment process.