Vendor Managed Inventory (VMI) benefits businesses by reducing costs, improving inventory management, enhancing forecasting, and increasing inventory transparency. VMI reduces labor costs, prevents over and under-stocking, and allows suppliers to control inventory, improving businesses' focus on other activities. It also improves supplier forecasting and inventory transparency, helping businesses better understand product demand and improve their supply chain's responsiveness. VMI is a great choice for manufacturers or e-commerce retailers with ample warehouse space who want to streamline the management of a large number of items.