word
vendor managed inventory
VEN-dur MAN-ijd IN-ven-tor-ee
ˈvɛndər ˈmænɪdʒd ˈɪnvənˌtɔːriːListen
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Syllable breakdown
vendormanagedinventory
Dictionary meaning
a supply chain arrangement in which the supplier (vendor) is responsible for monitoring and replenishing the buyer's inventory, based on real-time sales or usage data shared by the buyer; reduces stockouts and overstock for the buyer; increases vendor visibility and demand signal accuracy; pioneered by Walmart and Procter & Gamble in the 1980s
Examples
- Through vendor managed inventory, the supplier automatically replenishes store shelves when stock falls below a threshold.
- VMI arrangements require high trust and data-sharing between retailer and supplier.
Synonyms: VMI, supplier-managed inventory
Pronunciation tips
Often abbreviated VMI. Hyphenation varies: 'vendor-managed inventory' (with hyphen) when used as a compound modifier.
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