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Beyond JIT: How Our VMI Solves Packaging Supply Headaches

by | Business Practices

JIT is an abbreviation for “just in time.”

Just-in-time (JIT) corrugated packaging can refer to:

  • JIT manufacturing or
  • JIT inventory management.

JIT Manufacturing

JIT manufacturing is a production strategy in which materials are produced only when needed—rather than being held in inventory. Toyota coined the term in the 1970s.

JIT Inventory Management

By contrast, JIT inventory management is a strategy designed to optimize inventory levels. It aligns product delivery with customers’ needs.

boxes on a customer's production line

One advantage of JIT inventory management for corrugated packaging is that boxes arrive just in time for production lines.

JIT Corrugated Packaging

This article focuses on the latter type of JIT,  inventory management. More specifically, it covers inventory management for corrugated packaging.

For corrugated boxes, JIT inventory management means we deliver your custom boxes or displays:

  • Just in time for your production line.
  • Just in time for your shipping needs.
  • When your storage space allows.

Vendor Managed Inventory (VMI)

As an account representative with 20+ years at Wertheimer Box, I prefer the term vendor-managed inventory (VMI) instead of JIT inventory management.

VMI is a broader strategy with additional customer benefits. In brief, we manage your packaging inventory in a manner tailored to your specific business needs.

VMI is just one of the ways we out-service the competition and build customer trust and confidence.

truck transportation

With JIT inventory management and VMI, boxes arrive in time for your shipping needs.

 VMI Results That Are Similar to JIT Inventory Management

Some of the results of VMI are similar to JIT inventory management. Our customers with VMI enjoy the following benefits:

  • Streamlined operations. Manufacturers receive packaging in time for production. This reduces inventory and saves money.
  • Freed up space. Boxes don’t cramp smaller facilities, such as startups or restaurants with limited storage.
  • Improved supply chain efficiency. Online retailers and others receive shipping boxes just in time to fulfill orders.
flat box inventory managed at wertheimer

Wertheimer Box not only manufactures corrugated boxes, but also with a 303,000-square-foot plant, can store customers’ inventory.

bob seivert checks customer inventory levels

As part of a VMI strategy, Author Bob Sievert checks on a customer’s inventory.

How VMI Goes Beyond JIT Inventory Management

Additionally, VMI for Wertheimer Box corrugated packaging customers enables:

  • Greater flexibility. You can easily adjust to shifting demands, such as ramped or slowed production, as needed.
  • Better forecasting. We can help improve your estimates of packaging usage, particularly when you have numerous custom boxes or displays of varying types, sizes, or printing styles.
  • Low inventory Alerts. We can let you know when your company’s corrugated packaging inventories are running low.
  • Reducing waste and obsolescence. By not overproducing, you won’t have more boxes than you need, which can help you achieve corporate sustainability goals.
  • “Expanded” warehouse capacity. We have a 303,000-square-foot facility located just southwest of Chicago in McCook, IL, where we warehouse boxes so that you don’t have to.

Would JIT Packaging or VMI benefit your business?

Set a Meeting With Author Bob Sievert

Robert (Bob) Sievert

Robert (Bob) Sievert has extensive experience in the corrugated packaging industry. After graduating from high school, he worked in packaging production and began “climbing the corrugated ladder.” He soon became a designer, then transitioned into a customer service representative, and later moved into sales. He has worked at several companies in corrugated sales for more than 35 years. He has been happily at Wertheimer Box since 2002.