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2011•International Journal of Production ResearchRequires access

Prerequisites to vendor-managed inventory

Tarikere T. Niranjan, Stephan M. Wagner, Stephanie M. Nguyen

Open publisher page 40 citations

Abstract

Vendor-managed inventory (VMI) has become a widely used tool for supply chain performance improvement. However, not all VMI implementations are successful. Therefore, the aims of this research are to contribute to a better understanding of the critical issues surrounding VMI implementation, and to support corporate practice with a methodology for evaluating the VMI readiness of firms. Fifteen features that determine the suitability of VMI are identified. These can be broadly categorised as product-, company-, and supplier-related features. The framework developed in this research is validated through its application in 10 case study firms. The framework can be used by other firms to support the decision of whether or not to adopt VMI by providing valuable insight into how firms score on suitability for VMI adoptions along several dimensions.

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What this paper is about

Vendor-managed inventory (VMI) has become a widely used tool for supply chain performance improvement. However, not all VMI implementations are successful. Therefore, the aims of this research are to contribute to a better understanding of the critical issues surrounding VMI implementation, and to support corporate practice with a methodology for evaluating the VMI readiness of firms. Fifteen features that determine the suitability of VMI are identified. These can be broadly categorised as product-, company-, and supplier-related features. The framework developed in this research is validated through its application in 10 case study firms. The framework can be used by other firms to support the decision of whether or not to adopt VMI by providing valuable insight into how firms score on suitability for VMI adoptions along several dimensions.

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OpenAlex reports 40 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

Vendor-managed inventory (VMI) has become a widely used tool for supply chain performance improvement. However, not all VMI implementations are successful. Therefore, the aims of this research are to contribute to a better understanding of the critical issues surrounding VMI implementation, and to support corporate practice with a methodology for evaluating the VMI readiness of firms. Fifteen features that determine the suitability of VMI are identified. These can be broadly categorised as product-, company-, and supplier-related features. The framework developed in this research is validated through its application in 10 case study firms. The framework can be used by other firms to support the decision of whether or not to adopt VMI by providing valuable insight into how firms score on suitability for VMI adoptions along several dimensions.

Key concepts: Vendor-managed inventory, Supply chain, Vendor, Business, Implementation, Process management, Operations management, Product (mathematics)

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