VMI

Business & Finance abbreviation · Logistics, Supply Chain & Trade

VMI
Stands forVendor-managed inventory
CategoriesBusiness & Finance

VMI stands for Vendor-managed inventory, a logistics, supply chain & trade abbreviation.

Arrangement in which the supplier monitors a customer's inventory levels, using shared sales and stock data, and decides when and how much to replenish within agreed limits.

Example: Under VMI, the supplier sees our daily usage and ships before we run low.

Usage notes

The Walmart and Procter & Gamble partnership of the late 1980s is the classic example. VMI shifts work to the supplier but can reduce stockouts and excess inventory for both sides.

More logistics, supply chain & trade abbreviations

  • 3PL – Third-party logistics
  • 4PL – Fourth-party logistics
  • AEO – Authorized Economic Operator
  • AES – Automated Export System
  • AGV – Automated guided vehicle
  • AMR – Autonomous mobile robot
  • AMS – Automated Manifest System
  • AS/RS – Automated storage and retrieval system
  • ASN – Advance shipping notice
  • ATA Carnet – ATA Carnet
  • AWB – Air waybill
  • BAF – Bunker adjustment factor

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