Vendor Managed Inventory or VMI is an integrated supply chain practice where the inventory and product availability is monitored, planned and managed by the vendor on behalf of the customer. The products availability are according to the expected demand and on previously agreed minimum and maximum inventory levels.
at the customer side, Vendor Managed Inventory contribute for some advantages :
· Eliminate the risk of stock outs
· No order product specially urgent order
· Stock availability without interrupting operations
· Decreased costs
· Increased productivity
· Reduced replenishment times and lower inventory costs.
Through this method vendor will be able to :
· Well prepare for replenish stock
· Improved customer experience
· Long-term business relationships
· Build strategic strengths through establishing strong supply chain relationships
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