3 Keys to Making Vendor Managed Inventory (VMI) Work

2021-05-31T20:43:30-04:00May 24th, 2021|Categories: Inventory Management, Lead Time Reduction, Risk Mitigation, Supply Chain Management|Tags: , , , |

The ultimate goal of Vendor Managed Inventory (VMI) is cost reduction. VMI achieves this by better controlling material and information flow. In VMI, the supplier performs the function of planning inventory for the client. The information must be shared between the two parties to allow the supplier to manage a high level of inventory visibility at the client’s location. Rather than the client having to place an order when stock runs low, it is the supplier’s responsibility to…