Vendor Managed Inventory (VMI) improves the traditional ordering process by providing a streamlined, supplier led approach to inventory management and order fulfilment. VMI enables businesses to form a collaborative approach to enhance relationships between vendors and buyers by adding transparency and intelligence to the process. The benefits of a vendor managed inventory system include better inventory accuracy, forecasting and service. Ultimately, both the retailer and supplier can achieve greater sales volumes by efficiently predicting and acting on stock fluctuations.
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