Vendor managed inventory is a family of business models that the buyer of an item provides certain information to your vendor supplier of this product and supplier takes total responsibility for maintaining an agreed inventory of the material, usually with the buyer’s consumption location. A third-party logistics provider can even be involved to make certain the buyer contains the required level regarding inventory by modifying the demand and gives gaps. As a new symbiotic relationship, vendor managed inventory can make it less likely that the business will unintentionally become rented out already of a beneficial and reduces inventory in the supply chain.
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