VMI, or Vendor Managed Inventory, is an inventory collaboration model between a retailer and their suppliers. It’s designed to optimize the flow of goods in the supply chain by giving more control to the supplier. With this model in place, retailers can remain agile and better manage their inventory levels while maintaining high service levels. This ultimately leads to improved efficiency and cost savings. VMI is a great tool for business partners who are looking to streamline their operations and collaborate more effectively with each other.