VMI-VENDOR-INVENTORY

Vendor-Managed Inventory. See official source.

Definition

VMI — Vendor-Managed Inventory, model in which the supplier manages its customer's replenishment by consulting stock levels shared via EDI INVRPT and SLSRPT. Opposite model to BMI.

Origin

Popularised by Walmart and P&G in the 1990s, extended to most European retail via GS1 and ECR Europe. VMI relies on strict stock-sharing SLAs and a transferred commercial responsibility.

Use

The customer sends a daily INVRPT to the supplier, who derives ORDERS from it and ships via DESADV. No ORDERS issued by the customer; the supplier invoices via INVOIC on consumption.

Related

• BMI BUYER INVENTORY — see entry.
• DESADV — see entry.
• ORDERS — see entry.