How Distributors Use Vendor Managed Inventory to Reduce Stockouts

Episode 37 of Wholesale & Distribution with Fexingo explores Vendor Managed Inventory (VMI) — a model where the supplier, not the buyer, manages inventory levels at the customer's location. Lucas and Luna break down how VMI reduces stockouts, lowers carrying costs, and strengthens supply chain collaboration. They anchor the discussion with the real-world example of a mid-sized industrial distributor that cut emergency replenishment orders by 40 percent after implementing VMI with its top 20 suppliers in 2024. The episode drills into the mechanics: daily data sharing, agreed-upon min/max levels, and the shift from transactional purchasing to partnership. They also touch on the technology enablers — cloud-based platforms and API integrations — and the potential pitfalls, such as data accuracy and loss of buyer control. No fluff, just a clear case study in how distributors and their suppliers can align incentives for mutual gain. #VendorManagedInventory #VMI #Distributor #SupplyChain #InventoryManagement #Stockout #SupplierPartnership #DataSharing #API #CloudPlatform #IndustrialDistribution #Logistics #LeanInventory #B2B #Wholesale #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo