A01 chaf6542 06 se fm indd

 vendor-  managed  inventory 

(VMI)

 supply chain management system to enable delivery of supplies to be more responsive 

to customers’ demands. VMI is a key concept in electronic supply chain and procurement 

management which shifts the day‑to‑day tasks of stock management, purchasing and order 

tracking from the customer to the supplier.

 Vendor-  managed 

inventory (VMI)

Supply chain 

partners manage the 

replenishment of parts 

or items for sale through 

sharing of information on 

variations in demand and 

stocking level for goods 

used for manufacture 

or sale.

M06_CHAF6542_06_SE_C06.indd   257

7/23/14   12:22 PM

---

258

Part 2  Strategy and applications

Figure 6.5

A typical supply chain for a B2B company

B2B

Company

warehouse

Indep-

endent

wholesaler

B2B

Company

agent

B2B

retailer

or

exchange

Suppliers

Manufacturer

The

B2B

Company

Customers

Supplier

warehouse

Indep-

endent

wholesaler

Supplier

agent