In recent years, many international corporations have adopted the Vendor Managed Inventory (VMI) system, which allows a supplier to manage inventory and re-supply for their clients downstream. With the use of the inventory management system, the client relinquishes the workload of workers by managing the suppliers’ parts in exchange, thus, providing inventory visibility into their inventory levels and their requirements.

In addition, VMI not only enables the client to co-operate with the supplier in the lowest cost possible but also helps establish a closer partnership of the parties upstream and downstream. In the process, competitiveness is highly raised. Therefore, sharing the same risks, costs, and benefits by all members of the supply chain promotes long-term partnership. Moreover, through adaptation and use of the VMI, manufacturers would be able to minimize the ordering costs. Resources saved could be spent on enhancing the standard of services in terms of quality, quantity, time for production, and other utilities. As VMI records sales information, better knowledge on consumer demands would be revealed. Suppliers would soon be able to make necessary adjustments to the inventories of clients. As a bridge between suppliers and corporation, Crown Honor Logistics (Holdings) Ltd. has the objective to promote a close partnership between the two in the desire to raise the competitiveness of the whole supply chain.