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 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.

Vertical integration 

The extent to which supply  

chain activities are undertaken and controlled within  

the organisation.

Viral marketing 

In an online context, ‘Forward to a 

Friend’ email is used to transmit a promotional message 

from one person to another. ‘Online  word-  of-  mouth’.

Virtual integration 

The majority of supply chain 

activities are undertaken and controlled outside the 

organisation by third parties.

Virtual organisation 

An organisation which uses 

information and communications technology to allow  

it to operate without clearly defined physical boundaries 

between different functions. It provides customised 

services by outsourcing production and other functions  

to third parties.