Certified Supply Chain Professional (CSCP) Practice Exam

In a vendor-managed inventory model, what kind of access does the vendor typically have?

1. Access to competitor sales data

2. Access to customer’s point of sale inventory data

3. Access to customer health records

4. Access to all supplier data

The correct answer is: Access to customer’s point of sale inventory data

In a vendor-managed inventory (VMI) model, the vendor typically needs access to the customer’s point of sale (POS) inventory data. This access allows the vendor to monitor sales patterns, inventory levels, and demand directly from the retail locations. By having this information, the vendor can make informed decisions about when to replenish stock, ensuring that inventory levels are optimized and aligning supply with actual consumer demand. This leads to improved efficiency in replenishment processes, reduced stockouts, and enhanced customer satisfaction. In contrast, access to competitor sales data is generally confidential and not shared with vendors. Access to customer health records is related to privacy laws and typically not relevant to inventory management. Access to all supplier data involves a broader scope that usually exceeds the necessary information required for managing inventory effectively. Thus, focusing on POS inventory data is essential for executing a successful VMI strategy.