Abstract: A vendor-managed inventory system includes a VMI hub system (10), a buyer system (20), a plurality of vendor systems (30) and an external network (40) which interconnects all these systems. The VMI hub system stores and manages materials for the buyer system and the vendor systems, which can significantly reduce inventory control costs for both systems. The VMI hub system has a hub server (100) including a buyer requirements information management module (1002), an inventory information processing module (1004), an alert signal generating module (1006), a vendor delivery information management module (1008), and an inventor information updating module (1010). A related vendor-managed inventory method is also disclosed in the present invention.