The Vendor Managed Inventory (VMI) Model is a business process that enables an collaborative inventory management system between buyers and sellers. It allows vendors to take responsibility for forecasting, ordering, and stocking product in the buyer’s warehouses or stores. This process creates an efficient, cost-effective way to ensure that buyers always have inventory on hand when needed. By sharing information about sales, trends and new products, sellers can anticipate demand and keep buyers stocked up with the products they need. The VMI Model helps businesses reduce costs, increase efficiency, and save time by optimizing inventory decisions and helping companies deliver value more quickly.