Vendor Managed Inventory

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1.00 hour
Recorded Webinar

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About the Course

This course explores how effective management of inventory is a key challenge in most supply chains.

Course Description

Hold too much and you incur significant inventory carrying costs, run the risk of product obsolescence, and waste capacity. Hold too little and you may not be able to satisfy customer demand. Finding the right balance between too much and too little inventory requires effective forecasting, visibility, and collaboration.

Vendor managed inventory (VMI) is a proven model for controlling the level of inventory in the supply chain. Instead of each organization developing independent plans and managing inventory independently, a vendor takes full responsibility for managing customer inventory levels. The supplier monitors the use or sale of its products at the customer’s locations and decides when to initiate the resupply process and generate customer purchase orders.

This course focuses on the fundamentals of VMI, covering key issues and challenges, implementation requirements, and the expected outcome of VMI initiatives. Case studies and brief activities will be used to demonstrate key points.

This course is appropriate for individuals with limited exposure to the management of inventory in the supply chain, the use of VMI, and supply chain collaboration. The course is led by Dr. Brian Gibson, Associate Professor of Logistics at Auburn University. Dr. Gibson has studied inventory issues throughout industry and has an academic career that spans nearly 20 years.

Learning Objectives

After completing this course, you should be able to:

  • Discuss the role and applicability of a VMI strategy to various supply chain types.
  • Understand the value proposition of VMI (the cost and service implications of working with VMI).


The following topics are included in this course:

  • VMI definitions, purposes, processes, and strategies
  • Benefits and potential pitfalls of VMI
  • Role of technology in VMI