The term 'supplier-managed' combines 'supplier,' originating from the Latin word 'supplere,' meaning 'to fill up,' and 'managed,' from the Latin 'manus,' meaning 'hand,' and 'agere,' meaning 'to act.'

'Supplier' evolved from the Old French 'soupleier,' while 'managed' came from the Italian 'maneggiare,' meaning 'to handle.'

Initially, 'supplier-managed' referred to any process controlled by a supplier, but it has become more specific to inventory and supply chain contexts.