Vendor Managed Inventory. A customer service strategy used by suppliers to manage their customers inventory and reorder points to lower cost and improve service.
vendor managed inventory. 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.
Vendor Managed Inventory - a supply management system in which the manufacturer is responsible for maintaining the customer's inventory levels. In a typical VMI arrangement, the manufacturer has access to the customer's inventory data (often through telemetry) and is usually responsible for generating and fulfilling purchase orders to maintain the proper inventory level.
Vendor Managed Inventory. 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.
Vendor Managed Inventory. A practice, similar to continuous replenishment (CRP), where POS and inventory data is sent to suppliers who assume the responsibility for managing their inventories inside a distributor's organization.
VENDOR MANAGED INVENTORY. is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. Vendor Managed Inventory was first applied to the grocery industry, between companies like Procter & Gamble (supplier) and Wal-Mart (distributor). But increasingly, Vendor Managed Inventory is providing the benefits of smoother demand, increased sales, lower inventories and reduced costs to other industries.
A technique used by customers in which manufacturers receive sales data in order to forecast consumer demand more accurately. The vendor uses the sales information to maintain the proper level of inventory for each product that is stocked.
In the VMI process, the vendor assumes responsibility for managing the replenishment of a customer's stock. Rather than a customer submitting orders, the vendor will replenish stock as needed. This is sometimes referred to as suppliermanaged or co-managed inventory.
Vendor Managed Inventory. A customer service strategy used to manage the customer's inventory toward lower cost and improved service. VMI is used often between retailers and their suppliers and has been in use by some as early as 1985.
Vendor Managed Inventory. Vendor receives information about current levels of inventory stocked by him in the central warehouse; the inventory levels required to meet demand forecasts are calculated by the vendor (optimum batch sizes for supply of goods)
see VENDOR MANAGED INVENTORY.
Vendor-Managed Inventory: retailer sends stock information only to supplier; supplier calculates goods required and delivers to retailer. Similar to CR (q.v.).
Is the arrangement between an inventory keeper or warehouse and a supplier, for the supplier to manage and replenish products at appropriate levels. In effect, this transfers ownership of your inventory to your suppliers, keeping such inventory off the balance sheet.
Vendor managed inventory. Vendor managed inventory is a complete re-engineering of the traditional replenishment cycle. VMI uses EDI transactions, but unlike EDI, which merely automates existing work tasks, VMI eliminates work and tasks. It completely eliminates routine, repetitive purchasing activities for both the distributor and the manufacturer providing the program. The distributor retains control of his inventory by setting the objectives for service level or inventory investment. The manufacturer's computer operates the process, and measures the joint progress toward the objectives. The intended result is the achieving of the distributor's targeted service level to the end customer at the lowest possible total cost over time.
With VMI (Vendor Managed Inventory), the supplier becomes responsible for the inventory stored at the customer-side. In this case, a trusty relationship with the supplier and sufficient information concerning the client's inventory management are both crucial. VMI can be used for bulk materials and packaged goods, and helps the client to reduce stock levels and optimize its transport and inventory processes.
Vendor Managed Inventory (VMI) or Supplier Managed Inventory (SMI). A process whereby raw materials or assemblies are owned by the supplier at a buffer location close to the factory and pulled in a just-in-time manner to the production floor. The supplier plans and manages production to maintain a minimum saefty stock level in the buffer according to the factory forecast (usually 1-2 weeks). Designed to create a more responsive suply chain with less inventory.
Vendor Managed Inventory - the practice of retailers making suppliers responsible for determining order size and timing, usually based on receipt of retail POS and inventory data. Its goal is to increase retail inventory turns and reduce stock outs. Also used outside of retail to replenish steel stocks, say.
Abbreviation for vendor-managed inventory.