VMI, or Vendor Managed Inventory, is a supply chain strategy in which the supplier of a product is responsible for managing and replenishing the inventory levels of its customer. This allows them to remain up to date on their customer’s inventory needs so they can deliver stock quicker and more efficiently, while also offering further benefits like reducing costs and eliminating wastage. In short, VMI helps companies maintain and optimize their inventories across the supply chain – creating a win-win situation for both sides.