Ecommerce Fulfilment Services

Vendor Managed Inventory (VMI)

vendor managed inventory

Vendor Managed Inventory (VMI) is a supply chain practice where the inventory is managed by the supplier, rather than by the retailer. This business model is designed to increase efficiency in the supply chain by reducing stock-outs and improving inventory turnover.

In a VMI arrangement, the supplier has access to the retailer’s inventory data and is responsible for maintaining the inventory levels. The supplier decides when to replenish the stock and how much to supply based on predetermined minimum and maximum levels. This shifts the responsibility for inventory management from the retailer to the supplier.

More Fulfilment Terms

Order consolidation refers to the practice of combining multiple orders destined for the same location into a single shipment in the field of logistics and fulfilment.
Order processing time is the duration between when a customer places an order and when that order is dispatched from the warehouse or fulfilment centre

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