In Vendor Managed Inventory Systems (VMI), a supplier is responsible for managing the inventory of a customer. This system enables the supplier to have direct access to the customer’s inventory data and to monitor the customer’s inventory levels in real-time. This allows the supplier to make decisions about when to replenish the customer’s inventory and what items to replenish. This system also allows the supplier to take into account the customer’s sales trends and forecasts when making decisions about inventory replenishment. The supplier is also responsible for managing the customer’s inventory costs, such as shipping and handling fees. By using VMI, the customer is able to reduce their inventory costs, improve their inventory management, and improve their customer service. VMI also allows the supplier to better manage their customer relationships and to build a stronger partnership with the customer. VMI is a win-win situation for both the supplier and the customer, as it helps both parties to increase their efficiency and profitability.
