It is observed that supply chain technologies like VMI are now
becoming an integral part of enterprise’s strategy. Even small and medium enterprises can
adopt this practice and improve the performance of supply chain. This paper discusses
vendor managed forecasting with the help of case study. It shows how a small enterprise
improves supply chain performance by using demand related information obtained from
retailer. The results obtained in the study shows that vendor managed forecasting in supply
chain reduces the demand variation and improves inventory management significantly.