BMI-BUYER-INVENTORY

Buyer-Managed Inventory. See official source.

Definition

BMI — Buyer-Managed Inventory, model in which the buyer manages stock levels in its warehouse and places orders with the supplier. Classic model opposed to VMI.

Origin

Documented in GS1, Odette, ECR Europe guides. Dominant model in retail before the emergence of VMI in the 1990s (Walmart-P&G).

Use

In BMI, the buyer issues its EDIFACT ORDERS (or X12 850) according to its own triggers (PDP, replenishment points). The supplier receives ORDERS, confirms via ORDRSP, ships via DESADV.

Related

• VMI VENDOR INVENTORY — see entry.
• ORDERS — see entry.
• DESADV — see entry.