Vendor Managed Inventory (VMI) is a supply chain management strategy that shifts the responsibility of inventory management from the buyer to the seller. Under this agreement, the vendor continually monitors and adjusts the buyer’s inventory levels to account for demand fluctuations, product cycle stages, and other influences on stock. The seller not only manages the buyer’s inventory levels but also takes charge of activities such as replenishment, shelf-stocking, fulfillment, and other duties related to inventory control. With VMI in place, buyers can enjoy more predictable supply chains, enhanced order accuracy, and improved customer service.