What is Vendor Managed Inventory (VMI)? Vendor Managed Inventory (VMI) is an inventory management system where the vendor — not the client — takes full responsibility for planning, replenishing, and controlling inventory. At MSCP, we’ve reengineered this concept to work specifically for the complex needs of oil and gas projects across Alberta and Western Canada.
And the results speak for themselves.
Since launching our VMI program in 2020, MSCP has helped clients reduce material spend by 30–45%, while eliminating waste, delays, and procurement finger-pointing.
The Problem We Solved with Industrial VMI
Before VMI vendor managed inventory, project sites were chaotic. Materials were ordered in bulk or by each work order, often without knowing what was already on site. The result?
- Overstocked inventories
- Missed or delayed deliveries
- Duplicate orders
- Disorganized squirrel piles and sea cans
- Paper-based tracking systems
Teams wasted hours searching for parts instead of working on tools. Work scopes got delayed. Costs spiraled out of control.
It wasn’t just a purchasing issue. It was a system failure.
How MSCP’s VMI System Works
We don’t just manage inventory — we take full control of the material flow. Our VMI solution is built on:
- Software-based tracking that replaces outdated paper logs
- Weekly replenishment based on real-time site-level usage
- Algorithms that analyze site-wide consumption, not individual work orders
- Central warehousing where MSCP owns and controls all materials
- Digital visibility with granular detail down to the work order
We buy and manufacture all necessary materials related to our scope, clean up the site, and establish a single, organized warehouse.
Unused materials? Returned for credit. You only pay for what gets installed.
Real-World Results from Our VMI Program
Across multiple oil and gas projects like heat tracing or insulation, our clients have seen:
- 30–45% reduction in material spend
- Increased technician productivity and time on tools
- Zero material-related scope delays
- Fully digital ordering through iPads using our Digital Work Packages
- Just-in-time delivery by our Field Runner
Thanks to our VMI system, the teams stay on tools—no more scavenger hunts.
Why Vendor-Managed Inventory Works for Oil & Gas
The oil and gas industry moves fast, but the material flow hasn’t caught up. Traditional systems are fragmented and reactive. Our VMI Inventory Management flips the script.
MSCP’s Vendor Managed Inventory solution is:
- Proactive, not reactive
- Systemic, not ad hoc
- Transparent, not confusing
Whether you call it a VMI system, vendor managed inventory solution, or just a smarter way to manage materials — our systemic approach delivers real ROI.
Read about MSCP services for oil and gas industry
Ready to See Where You’re Losing Money?
Our team can audit your site and identify waste within days. Contact us to talk about our industrial vendor managed inventory system.
