Vendor Managed Services (VMS) is an approach to business relationships that allows a vendor-supplier team to transform traditional transactional elements into an ongoing partnership. With VMS, the vendor contributes specific skills or processes to managing the supplier’s operations in order to achieve improved customer service excellence, cost-savings, and increased collaboration. This type of relationship provides both parties with a shared risk and reward model, encouraging long-term engagements through data-driven insights, improved customer communication, and optimized operational efficiencies.