Vendor-Managed Inventory (VMI)

Vendor-Managed Inventory (VMI) is a supply chain strategy where the supplier is responsible for managing and replenishing inventory at the retailer's location. Instead of the retailer placing orders, the vendor monitors stock levels and makes decisions about when and how much to restock. This approach helps ensure that the retailer has the right amount of product on hand, reduces the risk of stockouts, and can improve efficiency. By delegating inventory management to the supplier, both businesses can work more collaboratively, ultimately enhancing overall supply chain performance.