Comprehensive Definition
VMI is a collaboration model where the supplier takes responsibility for managing stock levels in their client's warehouse. Instead of the client sending purchase orders, the supplier monitors inventory data (via WMS/EDI) and decides when and how much to replenish.
Advantages of the Logistic Symbiosis
For the Client (Retailer)
Reduction in administrative costs and lower risk of stockouts.
For the Supplier (Manufacturer)
Better production and transport planning, since they know the real demand of the end customer.
Role of Software
This trust requires the client's WMS to "open" a visibility window for the supplier, ensuring that stock and sales data is accurate and updated in real time.