Vendor-Managed Inventory (VMI)

In the Vendor-Managed Inventory (VMI) process, the vendor assumes responsibility for managing the replenishment of stock. Rather than a customer submitting orders, the vendor will replenish stock as needed. This process is sometimes referred to as supplier-managed inventory (SMI) or co-managed inventory.

A form of supply-chain management, Vendor-Managed Inventory (VMI) has become an increasingly popular tool for supply chain customers, whether they are themselves manufacturers, retailers or wholesalers.

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