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Category: Comerț B2B · Acronym: VMI
VMI (Vendor Managed Inventory)
Quick answer: The supplier manages stock at the customer/shelf — orders are triggered automatically at threshold, not issued manually.
Key takeaways
- Classic: customer emits PO → supplier ships → invoice
- VMI: supplier sees stock → proposes ASN → ships → consignment or invoice
Definition
Under VMI (Vendor Managed Inventory), the supplier takes responsibility for the inventory inside the customer's warehouse or on the customer's shelf. The customer shares sales and stock data; the supplier schedules automatic replenishments calibrated on real consumption, not ad-hoc orders.
Difference vs. classic orders
Classic: customer emits PO → supplier ships → invoice
VMI: supplier sees stock → proposes ASN → ships → consignment or invoice
Outcome: lower stock at customer, no shelf gaps (out-of-shelf), more stable production planning for supplier.
Benefits for both sides
For the supplier: sell-out visibility, stable production planning, higher retention, multi-year contracts.
For the customer: stock cut by 25-40%, out-of-shelf cut by 60-80%, zero time on replenishment ordering.
Technical implementation
Daily exchange of stock + sales (EDI INVRPT or API)
Replenishment algorithm based on min stock, lead time, seasonality, MOQ
Automatic ASN proposals with one-click customer approval, or fully automated
Monthly consignment reconciliation → fiscal invoice
Pitfalls
1. Bad data = bad decisions. If customer ERP stock is wrong, the algorithm asks for too much or too little.
2. No SLAs. Out-of-shelf definition, who pays for empty shelf must be defined contractually.
3. Underestimating cultural change. The customer's buyer loses apparent control — needs internal buy-in.
Frequently asked
- Does VMI only work for FMCG?
- No. The model applies anywhere there is repetitive consumption and a strategic partner: auto components, medical consumables, packaging for manufacturers, school supplies to bookshops.
- Who owns the stock under VMI?
- Depends on contract. Classic VMI transfers ownership on delivery. In consignment-VMI stock remains the supplier's until consumed and is invoiced on actual sales.
- Can VMI work without EDI?
- Yes — via REST API (Azuvio API) or a B2B portal where the customer uploads stock daily. EDI remains the standard for enterprise customers.
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