Co-Managed Inventory (CMI)

In logistics, Co-Managed Inventory (CMI) is a form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.

This type of inventory management system can help to improve communication and coordination between manufacturers and retailers, as well as reducing costs and increasing efficiency. In some cases, CMI may also be referred to as Vendor Managed Inventory (VMI).

The advantages of CMI are that it can:

Improve communication and coordination between manufacturers and retailers
Reduce costs
Increase efficiency
Help to reduce stockouts and overstocks
improve customer satisfaction.

CMI can be beneficial for both manufacturers and retailers as it helps to optimize inventory levels and improve overall supply chain management. In order for CMI to be successful, it is important that there is a clear understanding of roles and responsibilities, as well as good communication between all parties involved.

The disadvantages of CMI are:

Requires a high level of trust and cooperation between manufacturers and retailers
May be difficult to implement for some businesses
Can be more complex than other inventory management systems.

Co-Managed Inventory (CMI)

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