VENDOR MANAGED INVENTORY PROGRAMS Clause Samples
The Vendor Managed Inventory (VMI) Programs clause establishes that the vendor is responsible for monitoring and replenishing inventory levels at the customer's location. Under this arrangement, the vendor tracks stock usage and automatically ships products as needed to maintain agreed-upon inventory levels, often using shared data or electronic systems. This clause streamlines supply chain operations, reduces the risk of stockouts, and shifts the burden of inventory management from the customer to the vendor, ensuring a more efficient and reliable supply process.
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VENDOR MANAGED INVENTORY PROGRAMS. Fujitsu and any Fujitsu Subsidiary may institute “vendor managed inventory programs,” operated through either Product Distribution Centers or via one or more third parties, on terms and conditions to be agreed in writing in advance by Spansion and Fujitsu. For purposes hereof, a vendor managed inventory program is a logistics program where a supplier stocks inventory at either a third party or customer location based on a customer build forecast. The customer does not own the inventory and is only billed once the inventory is used. The amount of inventory and other terms and conditions are based on an initially negotiated contract.
VENDOR MANAGED INVENTORY PROGRAMS. The Parties may institute “vendor managed inventory programs,” operated through either Product Distribution Centers or via one or more third parties, on terms and conditions to be agreed in writing in advance by FASL and AMD.