Definitions for "Vendor Managed Inventory"
A customer service strategy used by suppliers to manage their customers inventory and reorder points to lower cost and improve service.
The management of stocks on behalf of a customer by the supplier, the supplier taking responsibility for the management of stocks within a framework that is mutually agreed by both parties. Examples are seen in separate supermarket racks maintained and stocked by merchandising groups for such items as spices, and car parts distributors topping up the shelves of dealers/garages, where the management of the stocks, racking and shelves is carried out by the merchandising group or distributor.
An element of inventory stocked by one organisation but where the forecast demand and required stock levels to meet that demand are calculated by the manufacturer or distributor of the items concerned.