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Looking to the Future- VGM Fulfillment Expands Operations to Help Businesses Grow

Posted on in Growth Strategies

By: Mike McGill, VGM Marketing 

VGM’s Fulfillment division recently completed an expansion, doubling its facility to 80,000 square feet.

Located one mile east of VGM’s corporate headquarters in Waterloo, Iowa, VGM Fulfillment’s state-of-the-art facility is a far cry from the 500 square foot garage from where its first order was shipped in 2009.  

“Once a good idea happens in this industry, word travels fast,” said Jeremy Stolz, VGM Fulfillment’s vice president of distribution. “We’ve worked hard to provide cost-effective solutions that can benefit providers. Due to these efforts, we’ve experienced a 35 percent increase in volume year over year.”

VGM Fulfillment provides the packing and distribution of CPAP resupplies, which, according to Stolz, seem to be the most cumbersome for providers. “We warehouse all inventory on consignment from all of the top CPAP vendors,” said Stolz. “We hold the supplies here, and once a provider gets the order, instead of packing at their own facility, they send us the order, and we handle the rest.”

Stolz says that providers get overloaded with product that may sit on their shelves, get misplaced or lost or may be discontinued, and VGM Fulfillment can alleviate that burden. “Our fulfillment service gets rid of the burden of managing re-supply inventory and the labor-intensive order fulfilment process.”

VGM charges a small shipping and handling fee, and based on cost calculations, it’s difficult for providers to do it cheaper than VGM. “When you factor in freight cost, wages, benefits, warehouse space, utilities, packaging and equipment,” said Stolz, “it’s tough to do it yourself for what we can.”   

Providers using VGM Fulfillment are benefiting by operating at a more efficient level. According to Gina Owen, assistant director of medical supplies at Mayo Clinic Stores, the most significant benefit of using VGM Fulfillment is the ease of ordering, the quick response time and the high accuracy and order fill rate. “Patients receive their orders in less time and more accurately than we were able to in-house,” said Owen. “Our staff continues to take patient orders, but the rest of the process is hands-off. This has allowed more of our staff to be on phones taking orders and not be on pick, pack and ship.” 

VGM Fulfillment serves as the warehouse shipping compound, which takes the time and expense away from providers having to house the inventory and manage the cost of goods sitting on their shelves. Fulfillment’s new logistics and shipping software provides seamless integration with billing systems and includes tracking reports.

“The most significant benefit is being able to process a large amount of orders daily without being concerned with items on a shelf,” said Stacy Colvett, vice president of Sleep Solutions and Services. “Fulfillment worked with us on reporting so that we could have a seamless model to be able to import tracking on packages shipped. This one step helped tremendously in the ability to bill orders that were placed and shipped.” 

When asked what was next for Fulfillment, Stolz mentioned that although it seems like “we’re just getting started,” they will be piloting some other product lines in 2017.

For more information about VGM Fulfillment, including a list of suppliers, visit them online, or call 800-969-1213.  

Check out other ways to operate leaner in 2017 by downloading VGM’s “Analyzing Business Operations Playbook” at playbook.vgm.com.