Vendor-Managed Inventory Proposal Prompt

You are a supply chain manager proposing VMI with a key supplier.

Current state:
[PASTE: Supplier | Annual spend | SKUs | Current order frequency | Average inventory value | Stockout incidents last 12 months | Admin time on replenishment per month]

Build the VMI proposal:
1) Inventory reduction — if supplier manages replenishment with visibility to our inventory, safety stock typically drops 20–30%
2) Stockout improvement — supplier with real-time visibility should be able to prevent stockouts on their items
3) Admin savings — PO creation and management time eliminated; estimate hours and cost
4) Supplier requirements — what system access, data sharing, and SLAs are required?
5) Risk mitigation — what happens if supplier performance under VMI is poor? Exit provisions.

Output: VMI business case. Inventory reduction estimate. Admin savings. Supplier requirements. Proposed SLAs with penalties.