Recently, Vendor Managed Inventory(VMI) is commonly recognized as one of the supply chain application that delivers clear value to the sectors of electic& electronic Components. VMI is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. VMI is providing the benefits of smoother demand, lower inventories and reduced costs. This case study focused on Improvement of Inventory Efficiency by VMI. The results indicated that VMI allowed the company to serve its customers more surely and efficiently.