Why Distributors Are Turning to Vendor-Managed Inventory

Episode 15 of Wholesale & Distribution with Fexingo explores how vendor-managed inventory (VMI) is reshaping B2B supply chains. Lucas and Luna break down a real case: a mid-sized industrial distributor who cut stockouts by 40% and reduced carrying costs by 18% after implementing VMI with a key supplier. They discuss the data-sharing requirements, the trust threshold needed to hand over ordering decisions, and why smaller distributors often resist until a major customer demands it. The episode also covers the technology that makes VMI viable today—cloud-based inventory platforms and API-linked demand signals—and the pitfalls, like overstocking when the supplier has misaligned incentives. If you distribute anything with predictable consumption patterns, this episode gives you the framework to evaluate whether VMI could work for your business. #VendorManagedInventory #VMI #B2BDistribution #SupplyChain #InventoryManagement #Stockouts #CarryingCosts #SupplierRelationships #DemandForecasting #CloudInventory #API #IndustrialDistribution #ChannelPartners #Wholesale #Business #FexingoBusiness #BusinessPodcast #DistributionStrategy Keep every episode free: buymeacoffee.com/fexingo