Document background
The Vendor Managed Inventory Agreement is essential for businesses implementing efficient supply chain solutions under German law. This document is typically used when companies want to optimize their inventory management by delegating responsibility to their suppliers, who take charge of monitoring, managing, and replenishing stock levels. The agreement addresses key aspects such as inventory ownership, risk transfer, performance metrics, and technology requirements while ensuring compliance with German commercial law (HGB) and relevant EU regulations. It's particularly important for industries with complex supply chains or high-volume inventory movements, providing a legal framework that protects both parties while enabling efficient inventory management processes.
