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Vendor managed Inventory

Hi Gurus,

What is the significant difference between vendor managed inventory and vendor consignment.

With regards,


Former Member
Former Member replied


In case of consignemnt your vendor keeps stock at your location, it is its property. The ownership changes when you take some goods from it (GI from consignment).

In case of VMI the stock is owned by you and not by your vendor. The supplier has to take care the stock level, it is responsible e.g. to keep the stock level between a minimum and maximum value (can be static or dynamic). To be bale to realize this, your vendor has to have access to the stock level information.



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