Vendor Managed Inventory Agreement

Summary

This template is a vendor managed inventory agreement between a manufacturer or supplier of products and a customer, and provides for the supplier to manage the customer's inventory and for the purchase of the supplier's products. This template includes practical guidance, drafting notes, and alternate clauses. A vendor managed inventory arrangement provides for a streamlined approach to inventory management and product order fulfillment. The customer outsources to the vendor the responsibility of monitoring and replenishing its inventory levels. In this template, the parties agree on how the arrangement will operate, including identifying the particular products and customer locations that will be serviced by the vendor. For a full listing of content related to distribution arrangements, see Distributor Resource Kit. For a full listing of related supply of goods content, see Supply of Goods Resource Kit. For additional guidance, see the Vendor Managed Inventory Alternative.