Vascular tissue refers to the conducting tissue in flowering plants. In monocots, vascular bundles are scattered throughout the stem. The phloem faces the outside of the stem while the xylem faces the center. Phloem tissue transports food while xylem tissue transports water. A good example is to picture a pepperoni pizza--with the pepperoni representing the scattered vascular bundles in a monocot stem. In dicot stems, vascular bundles are arranged in a cylindrical or circular pattern. The cells inside the ring of vascular tissue are called pith and the cells outside form the cortex of the stem.