Recruiter's Glossary

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VMI

Term from Supply Chain Management industry explained for recruiters

VMI (Vendor Managed Inventory) is a business practice where suppliers take responsibility for managing their customers' inventory levels. Think of it like having a vendor stock the shelves at a store - they monitor what's running low and refill it automatically. This system helps businesses avoid running out of stock while also preventing excess inventory. It's similar to how a vending machine company manages snacks in their machines: they check the levels and refill when needed, so the host company doesn't have to worry about it. Other names for this include "supplier managed inventory" or "automated replenishment programs."

Examples in Resumes

Implemented VMI program with key suppliers resulting in 30% reduction in stockouts

Managed relationships with 15 vendors through Vendor Managed Inventory system

Led transition from traditional ordering to VMI solutions for warehouse operations

Typical job title: "VMI Specialists"

Also try searching for:

Inventory Manager Supply Chain Coordinator VMI Analyst Inventory Control Specialist Supply Chain Manager Materials Manager Procurement Specialist

Where to Find VMI Specialists

Professional Organizations

Online Communities

Job Resources

Example Interview Questions

Senior Level Questions

Q: How would you implement a VMI program with a new supplier?

Expected Answer: Should explain the process of setting up agreements, establishing inventory targets, determining roles and responsibilities, selecting technology solutions, and creating performance metrics for program success.

Q: How do you measure the success of a VMI program?

Expected Answer: Should discuss key performance indicators like inventory turnover, stockout rates, carrying costs, order accuracy, and supplier compliance rates, plus how to track and improve these metrics.

Mid Level Questions

Q: What are common challenges in VMI programs and how do you address them?

Expected Answer: Should identify issues like data accuracy, communication gaps, technology integration, and resistance to change, along with practical solutions for each challenge.

Q: How do you determine appropriate inventory levels in a VMI system?

Expected Answer: Should explain factors like lead time, demand variability, seasonal patterns, and safety stock calculations in simple terms.

Junior Level Questions

Q: What is VMI and what are its main benefits?

Expected Answer: Should explain that VMI lets suppliers manage inventory levels, reducing costs and stockouts while improving efficiency. Should mention basic benefits like reduced administrative work and better supplier relationships.

Q: What information is typically shared between supplier and customer in a VMI program?

Expected Answer: Should mention inventory levels, sales data, forecasts, minimum/maximum stock levels, and order history as key pieces of shared information.