Why Trailer Manufacturers Use VMI to Control High-Volume Fastener Inventory

Why Trailer Manufacturers Use VMI to Control High-Volume Fastener Inventory

In trailer manufacturing, production efficiency depends on many factors. Chief among those factors is ensuring you have the right parts when you need them.

One product ubiquitous across the trailer manufacturing industry, regardless of trailer type, is fasteners. Fasteners are some of the hardest components for trailer manufacturers to manage day to day. The bolts, nuts, rivets, washers, and so many others that go into a trailer are critical for production but also play an outsized role in the flow of operations. With custom trailer builds and varying customer specifications, fastener demand can change from job to job—making manual forecasting unreliable. 

That’s why many trailer manufacturers have turned to VMI (Vendor-Managed Inventory) and CMI (Customer-Managed Inventory) programs from dependable supplier partners, which are equipped to implement them to help manage their fasteners. By outsourcing fastener replenishment to trusted suppliers, trailer builders can improve accuracy, reduce stockouts, and free internal teams to focus on production rather than procurement.

In this post, we’ll help you learn why vendor-managed inventory programs allow trailer manufacturers to better control high-volume fasteners, reduce stockouts, and improve production efficiency.

Fastener Inventory Challenges in Trailer Manufacturing

Fasteners are a perfect fit for vendor-managed inventory in trailer manufacturing because they’re used in nearly every stage of production. Yet, as previously mentioned, high-volume fastener inventory is difficult to manage effectively. The challenges trailer manufacturers face with fasteners include:

• High SKU counts across different sizes, grades, coatings, and thread types
• Unpredictable usage due to custom builds and fluctuating demand
• Stockouts that can halt production
• Overstock that ties up cash and warehouse space

A custom trailer manufacturer producing mixed-use utility and enclosed trailers may stock hundreds or more unique fastener SKUs across all parts of the assembly. When one specialty rivet runs out, production may not simply slow down – it can potentially stop entirely. VMI programs eliminate this risk by aligning replenishment directly with real-time usage, not forecasts. Without vendor-managed fastener inventory, these issues can erode efficiency, increase costs, and delay shipments.

Why High-Volume Fasteners Are Ideal for VMI

VMI fastener programs are the perfect solution for managing high-volume fasteners, as they are frequently used, unpredictable, and critical to every project. In a VMI model, the supplier:

• Monitors on-hand inventory levels
• Replenishes stock automatically based on agreed-upon thresholds
• Ensure the right fasteners are always available without the need to reorder manually

This method is beneficial for VMI of bolts, nuts, and rivets, as missing even one part can halt an entire production line. Thanks to VMI, manufacturers can move from reactive ordering to proactive supply management.

How VMI Reduces Stockouts and Overstock

One of the most significant benefits of VMI is the balance it provides. Instead of guessing how much inventory to hold, manufacturers rely on actual usage data and supplier expertise.

With vendor-managed inventory for trailer manufacturers, companies can:

• Reduce fastener stockouts, preventing costly downtime
• Minimize excess inventory and carrying costs
• Improve forecasting accuracy
• Eliminate emergency orders and expediting fees

By right-sizing inventory, VMI creates a more stable and predictable supply chain without sacrificing responsiveness.

Production Efficiency Gains with Vendor-Managed Inventory

Beyond inventory control, VMI directly improves production performance. When fasteners are consistently available and purposely stocked at the point of use, manufacturers experience:

• Fewer production interruptions
• Faster assembly cycles
• Better line flow and labor efficiency
• Less time spent on purchasing, counting, and replenishment

These gains make trailer manufacturing inventory management more streamlined and scalable. Inventory solutions for trailer builders, such as VMI, support expansion without adding administrative burden to growing operations.

Is VMI Right for Your Trailer Operation?

If your team struggles with frequent stockouts, excess fastener inventory, or time-consuming replenishment tasks, VMI may be the solution. It’s especially effective for operations that:

• Use large volumes of standard fasteners
• Run multiple shifts or high-throughput lines
• Want to improve efficiency without increasing headcount

Understanding how to manage fastener inventory in trailer manufacturing starts with evaluating whether VMI aligns with your production goals, part volumes, and supplier relationships.

Ready to Take Control of Your Fastener Inventory?

Stop letting fastener inventory slow down your production. With a VMI program for trailer OEMs, your team stays focused on building trailers—not counting bolts. Austin Hardware’s VMI manufacturing solutions offer the needed experience and expertise to lead the charge. Learn more about our or contact us today to see how we can help streamline your fastener inventory and keep production moving.