Dictionary term

Vendor-Managed Inventory (VMI)

An arrangement in which a supplier monitors a customer’s inventory and manages replenishment under agreed rules.

An arrangement in which a supplier monitors a customer’s inventory and manages replenishment under agreed rules.

Why Vendor-Managed Inventory (VMI) matters

Understanding this term helps teams align sales, operations, finance, and technology around how business customers evaluate, purchase, and receive products or services.