vertical marketing system
Also found in: Acronyms.
vertical marketing system (VMS)a distribution system in which a firm in a DISTRIBUTION CHANNEL undertakes as a vertically integrated operation a number of channel functions (wholesaling, retailing), or is able to control independent firms in the channel by, for example, contractual arrangements such as EXCLUSIVE DEALING and FRANCHISING.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson