What is Supplier Managed Inventory?
Supplier Managed Inventory (SMI) is a business model where the supplier of a product takes responsibility for maintaining an agreed inventory of material. The product is usually stored at the Buyer's location for easy consumption.
SMI provides foundational capability for Supply Chain Collaboration between Buyers and Suppliers by sharing inventory, demand information and replenishment of inventory based on established Min/Max levels
Note
In some industries SMI is referred to as Vendor Managed Inventory or VMI. Both SMI & VMI are the same and referred to interchangeably.