{"id":457,"date":"2016-10-26T15:00:30","date_gmt":"2016-10-26T17:00:30","guid":{"rendered":"https:\/\/neogrid.com\/en\/how-sellers-and-buyers-benefit-from-vendor-managed-inventory\/"},"modified":"2016-10-26T15:00:30","modified_gmt":"2016-10-26T17:00:30","slug":"how-sellers-and-buyers-benefit-from-vendor-managed-inventory","status":"publish","type":"post","link":"https:\/\/neogrid.com\/en\/how-sellers-and-buyers-benefit-from-vendor-managed-inventory\/","title":{"rendered":"How Sellers and Buyers Benefit From Vendor Managed Inventory"},"content":{"rendered":"

VMI<\/a> relationships are designed to optimize the performance of the supply chain by helping manufactures better maintain the inventory levels of the distributor. The VMI is stored at the point of use with the customer, but ownership does not pass until the item is either drawn upon or consumed.<\/p>\n

Buyers and sellers share organization data in such a way that the buying organization generates and sends all purchase orders while the selling organization receives a series of updates on what items the buying organization has consumed, how much of those items have been consumed, what stock levels they currently have, and so on. Using this information, the seller can then make informed decisions of what stocks to replenish and when.<\/p>\n

It\u2019s a simple but highly beneficial arrangement when executed properly. Given that the seller can view the buyer\u2019s stock, it becomes easy to create and maintain an inventory plan that suits that buyer.<\/p>\n