A Vendor Managed Inventory System (VMI) is an inventory management system that allows vendors to take control of the inventory management process for their customers. This system is beneficial for both the vendor and the customer, as it allows the vendor to manage their customer’s inventory more efficiently and accurately, while also providing the customer with better visibility into their inventory levels. VMI systems allow vendors to track inventory levels in real-time, as well as receive orders and provide replenishment orders to the customer. This helps to ensure that the customer’s inventory is always at the optimal level, reducing the risk of stock-outs and improving customer satisfaction. Additionally, VMI systems provide vendors with more control over their customer’s inventory, allowing them to make better decisions about pricing, promotions, and product availability. Ultimately, VMI systems provide a more efficient and cost-effective way to manage inventory, resulting in improved customer satisfaction and increased profits for the vendor.