Enterprises use supply chain management practices for improving business or supply chain performance. It is observed that supply chain technologies like VMI are now becoming an integral part of enterprise’s strategy. Even small and medium enterprises can adopt this practice and improve the performance of supply chain. This paper discusses vendor managed forecasting with the help of case study. It shows how a small enterprise improves supply chain performance by using demand related information obtained from retailer. The results obtained in the study shows that vendor managed forecasting in supply chain reduces the demand variation and improves inventory management significantly.