vendor managed inventory: an inventory management system in which a supplier assumes responsibility for the timely replenishment of a customer's stock
VMI in Retail
(vi ɛm aɪ) or vendor managed inventory
abbreviation
(Retail: Merchandising)
VMI is a system in which a seller takes responsibility for an uninterrupted supply of their product to a retailer, so that the retailer will not run out of stock.
VMI has gained considerable attention due to the success of third-party vendors who offeradded expertise and knowledge that retailers may not possess.
In VMI the manufacturer has access to the distributor's inventory data and is responsiblefor generating purchase orders.
VMI is a system in which a seller takes responsibility for an uninterrupted supply oftheir product to a retailer, so that the retailer will not run out of stock.