VMI - Vendor Managed Inventory
Vendor Managed Inventory (VMI in short) involves the management of a supplier’s warehouse stock. It constitutes a form of outsourcing the entire supply chain by manufacturing companies and is a holistic, innovative approach to the cooperation of three parties: manufacturing company, component supplier and logistics operator.
The nature of the process is that the component stock remains the property of the supplier but is controlled by the logistics operator. This happens at an optimal distance from the location of delivery to the recipient, namely the manufacturing or trading company. The main recipient does not incur any direct costs connected with handling and maintaining the stock. It can use the stock as necessary, buying only so much that it requires at a given moment.
Operating the VMI system is usually connected with opening a consignment warehouse and running an efficient customs clearance process.