Inventory management is a constant balancing act. Too much stock ties up capital and space, while too little can lead to production delays, missed deadlines, and dissatisfied customers. That’s why many companies are turning to managed inventory solutions, a strategic approach in which a fabrication partner like Herold Precision Metals handles the supply chain for them.

Enabling your fabrication partner to manage your inventory frees up resources, reduces costs, and improves efficiency. This allows your business to focus on growth instead of stock levels.

What Is Managed Inventory?

Managed inventory means outsourcing stock control to your fabricator, allowing them to oversee the raw materials, components, and finished goods essential to production. At HPM, this means real-time tracking, optimized stock levels, product and part storing, and a seamless supply chain that prevents costly interruptions.

This approach is sometimes referred to as Vendor-Managed Inventory (VMI). In this system, suppliers automatically replenish stock based on usage data and demand forecasts, reducing the need for constant inventory oversight on your end.

The Key Benefits of Partnering for Inventory Management

Here’s how managed inventory can optimize your supply chain and drive business growth.

1. Reduce Inventory Costs & Free Up Capital

Holding excess inventory increases storage costs and ties up capital that could be used for growth, innovation, or operational improvements. A managed inventory system allows you to maintain lean stock levels without risking shortages, allowing resources to be allocated more efficiently.

2. Minimize Stockouts & Overstocking

Stock shortages disrupt production, delaying deliveries and frustrating customers. Overstocking, on the other hand, can lead to waste, unnecessary storage fees, and outdated materials. A fabrication partner like HPM continuously monitors stock levels in real-time, often utilizing a Kanban inventory system, to eliminate the risk of shortages or excess materials by adjusting orders to meet actual demand.

3. Improve Forecasting Accuracy

With real-time inventory tracking and historical data analysis, managed inventory ensures your stock levels align with actual consumption patterns. By leveraging HPM’s precision forecasting, businesses can better predict demand trends, reducing the guesswork in purchasing decisions.

4. Enhance Production Flow & Efficiency

Smooth production hinges on the right materials arriving at the right time. But if your fabrication partner is handling your inventory, bottlenecks caused by supply shortages are eliminated. This keeps workflows efficient and operations running at peak capacity.

5. Strengthen Cost Control & Operational Flexibility

Unpredictable costs from rush orders, emergency shipments, and wasted stock eat into profitability. Managed inventory minimizes these expenses by optimizing stock levels and cost-effective bulk ordering strategies. Additionally, businesses gain flexibility by adapting to shifting production needs without the burden of managing stock logistics.

6. Reduce Administrative Burden

Tracking, ordering, and restocking inventory is a time-consuming task. With HPM overseeing the process, your team can redirect time and resources toward high-value business activities, such as customer service, product development, and market expansion.

How HPM’s Warehousing Capabilities Support Managed Inventory

HPM offers warehousing and managed inventory solutions designed to keep your production running efficiently. We don’t just fabricate precision metal components — we provide end-to-end inventory solutions that streamline your supply chain. Our dedicated warehousing facilities provide:

Real-Time Inventory Monitoring: Our advanced tracking systems ensure that materials are stocked and replenished precisely when needed.
Optimized Ordering & Replenishment: We align material orders with actual demand to prevent overstocking and shortages.
Strategic Supply Chain Integration: Seamless coordination between inventory management and production workflows to improve efficiency.
Custom Storage Solutions: We accommodate a wide range of materials and components in our 110,000-square-foot facility for safe and efficient storage.

Scalability for Your Business: Whether you need to scale up production or adjust to seasonal demand, our flexible inventory solutions adapt to your needs.

Our warehousing capabilities allow us to house your materials, track stock levels, and ensure seamless delivery to your production floor, saving you space and logistical headaches.

Focus on Growth — Let Us Handle the Stock

Managed inventory isn’t just about keeping materials on hand — it’s about freeing your business to focus on what truly matters. By partnering with HPM, you can reduce overhead costs, improve efficiency, and gain a reliable supply chain partner invested in your success.

Ready to streamline your inventory and focus on growth?Explore our warehousing capabilities orcontact us today to learn how we can help optimize your supply chain.

The Benefits of Managed Inventory: Focus on Growth, Not Stock