• In ideal conditions, the vendor replenishes
inventories in quantities that meet the retailer’s
immediate demand and reduce stockouts with
minimal inventory.
• In addition to better matching retail demand to
supply, VMI can reduce the vendor’s and the
retailer’s costs.
• Vendor salespeople no longer need to spend time
generating orders on items that are already in the
stores, and their role shifts to selling new items
and maintaining relationships.
• Retail buyers and planners no longer need to
monitor inventory levels and place orders.