Why Suppliers are Using Vendor Managed Inventory (VMI) to Sell Smarter

In today’s competitive retail landscape, staying in stock isn’t just a goal—it’s a growth strategy. That’s where Vendor Managed Inventory (VMI) comes in.

VMI is a supply chain management strategy where suppliers take on the responsibility of managing inventory for their retail partners. Instead of waiting for a purchase order, the supplier monitors sales, forecasts demand, and ensures products are replenished automatically. It's a collaborative approach that helps everyone win—retailers get fewer stockouts and leaner operations, while suppliers unlock more consistent sell-through and shelf space.

And it’s catching on fast: according to Lucintel, the global VMI market is projected to grow at a CAGR of 9.3% from 2024 to 2030, as more businesses—from multinational brands to indie startups—look to take tighter control of the shelf.

Why VMI Is Taking Off in the U.S.

The rise of VMI in the U.S. has been fueled by two major forces: smarter technology and shifting retail expectations.

1. Tech-Powered Visibility: Advances in digital platforms now allow suppliers and retailers to share real-time inventory data. This transparency helps vendors react faster and avoid costly stockouts or overstocks.
2. Smarter Forecasting: Machine learning is helping brands predict future demand with more accuracy, so they can deliver just-in-time inventory and reduce waste.
3. ERP Integration: Major retailers are integrating VMI with their existing ERP systems to streamline operations and improve communication across their supply chain.

The Challenges Holding Some Brands Back

Despite its advantages, adopting VMI isn’t always easy.

• High upfront costs can be a hurdle for smaller brands.
• Legacy system integration can be slow and clunky.
• And many solutions take a “one size fits all” approach—ignoring the reality that most suppliers are managing a mix of products, regions, and partners with unique requirements.

That’s where Pantry stands out.

How Pantry Makes VMI Work—Even for Complex Suppliers

Pantry is built for modern CPG and cannabis brands that want the benefits of VMI without the complexity or bloat.

We partner with organizations like Kiva Sales and Services, whose national footprint and diverse brand portfolio demand a flexible, data-driven VMI solution. Pantry adapts to their unique workflows—managing everything from dispensary inventory levels to demand surges—without disrupting operations.

We also work with brands like Rind, where staying on-shelf in a fast-moving snack category means every case counts. Pantry helps suppliers like Rind automate replenishment, forecast smarter, and reduce manual lift—all while making it easier to collaborate with their retail buyers.

No matter how complex your supply chain, Pantry makes VMI not just possible—but profitable.

Vendor Managed Inventory is no longer just for big-box players with massive IT budgets. With the right tech, it can help any supplier grow faster, stay leaner, and win more shelf space. Pantry gives you the tools to do exactly that—with flexibility, visibility, and control baked in.

Want to see how Pantry can work for your brand? Let’s chat.