The e2open white paper explains how vendor‑managed inventory can help companies improve service levels, reduce risk, and optimize inventory across the supply chain. Vendor‑managed inventory places responsibility for replenishment and inventory decisions with the supplier, using shared data and collaboration. The paper clarifies common VMI variations and helps organizations understand whether the model fits their needs by identifying typical symptoms such as demand variability, frequent stockouts, excess inventory, or limited visibility. It emphasizes that successful VMI depends on trust, clear roles, accurate data, and aligned goals between partners, enabling more responsive replenishment, lower inventory costs, and stronger supplier‑customer relationships.

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