A Vendor Managed System (VMS) is an innovative way of handling business operations, allowing vendors to take control of the entire process. It allows companies to streamline their workflow by outsourcing certain activities such as inventory management, supplier selection and vendor payments, resulting in a more cost-effective and efficient system. VMS also provides improved transparency, allowing both parties to have an analytics-driven view of the entire process. With this approach, businesses can optimize their supply chain and ultimately increase their operational efficiency.