Vendor Managed Inventory, or VMI for short, is the strategic practice of having a supplier maintain and manage inventory levels in your business. This allows businesses to ensure they always have the right product, at the right quantity, and at the right time. By managing their own inventory, suppliers can reduce stockouts and wasted capital while also providing improved customer service. As VMI also reduces the management costs associated with procurement, it’s an attractive option for many businesses looking to streamline their operations.