Vendor-managed Inventory

(abbr. VMI): With VMI, the supplier (or outsourcing partner) takes over the inventory management of its goods and merchandise from the customer (retailer or producer). To this end, the supplier receives continuous information, e.g. on the customer’s forecast requirements. The aim of VMI is to achieve a higher level of service with shorter response times and lower inventories.

Source: logipedia / Fraunhofer IML