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Glossary

What is Vendor-Managed Inventory (VMI)?

Last updated July 2026

Definition

Vendor-managed inventory (VMI) is an arrangement where the supplier monitors and replenishes a customer's stock of their items, shifting the planning burden upstream.

Also known as: VMI

VMI can cut stockouts and admin for the customer, but without shared visibility it can also hide excess. Data quality and fair-value benchmarking keep it honest.

Distributors increasingly pair VMI programs with inventory intelligence so both sides see the same picture.

Part of MRO & distribution transformation.

See what your inventory is really costing you.

Tell us where the cash is trapped — excess stock, idle surplus, slow RFQs — and we'll show you the outcome Maintained can unlock.

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