Supply Chain Tools: Vendor Managed Inventory (VMI) Systems

Vendor Managed Inventory (VMI) systems allow suppliers to manage inventory levels on behalf of their customers. These tools provide real-time data on inventory usage and stock levels, enabling suppliers to proactively replenish inventory. VMI systems reduce the burden on customers to manage stock, improve supply chain efficiency, and enhance collaboration between suppliers and customers. By ensuring optimal inventory levels and reducing stockouts, VMI systems contribute to better service levels and reduced carrying costs. In a collaborative supply chain, adopting VMI technology fosters stronger partnerships and streamlined operations.