Inventory Management Practices and its Effects on Vendor Managed Inventory Performance (original) (raw)
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Analysis of vendor managed inventory practices for greater supply chain performance
International Journal of Logistics Economics and Globalisation, 2010
For a globalised supply chain to be responsive, the firm should have the ability to meet short lead times, respond to wide ranges of quantities demanded, handle a large variety of products, build highly innovative products and meet a very high service level. Vendor managed inventory (VMI) is one such supply chain practice where the vendor is given the sole responsibility to monitor and manage the inventory of the retailer. This paper attempts to analyse this supply chain practice and illustrate the key elements of this system and the role it plays in the overall supply chain. The benefits and risks of the VMI system are also analysed. The design and implementation steps for this supply chain practice are extensively reviewed. The analysis of industries which would benefit from implementing this system is also conducted. An investigation is attempted to see if any industries in the UAE are using VMI.
International Journal of Supply Chain Management, 2018
The purpose of this study is to understand the key success factor for success implementation and long-term sustainability of Vendor Managed Inventory (VMI). The respondents for this study was employees who work in supply chain related department in electronic and electrical industry in Malaysia. The independent variables include integrated system and common platform, relationship quality and commitment, information quality and clearly outline expectation and communication. While the identified dependent variable is the key success factor for VMI implementation and sustainability. The management commitment is regarded as moderating effect of the relationship between independent and dependent variables. The data is collected using online questionnaire and subsequently analysed using SPSS and PLS. The relationship of variables is tested and examined. The finding demonstrates quality of information have positive and significant relationship with long term sustainability and success implementation of VMI. Besides, the study gives implication that there is positive relationship between relationship quality and integrated system toward VMI sustainability but they do not have significant influence against VMI implementation and sustainability. While expectation have negative and insignificant influence towards VMI implementation. The moderator effect of management commitment been assessed as insignificant as well.
The relationship between vendor managed inventory and operational performance
Modern Supply Chain Research and Applications
PurposeFor the supply chain to be responsive in the age of globalization, the firm needs to adopt strategies to enable them to meet the changing market needs. Thus, it is essential to adopt automatic replenishment programmes such as vendor-managed inventory (VMI). This study sought to examine the relationship between VMI and operational performance (OP) and the moderation roles of leadership and digitization in the mining sector.Design/methodology/approachA quantitative approach was used, including primary data collected from industry players in the mining sector in Ghana. A total of 97 industry players were included in the study. Data gathered was analysed using SPSS and LISREL (8.5).FindingsThe results indicate that VMI significantly affects OP. However, both digitization and leadership failed to moderate the relationship between VMI and OP.Practical implicationsThe study offers mining companies an understanding of VMI applications in their industry. The knowledge will stimulate a...
Performance outcomes and success factors of vendor managed inventory (VMI)
Supply Chain Management-an International Journal, 2008
Purpose - The purpose of this paper is to seek to investigate performance outcomes of vendor managed inventory (VMI) from a buyer's perspective and enablers for its successful application. Design/methodology/approach - Structural equation modelling through Partial Least Squares (PLS) is used to identify relationships between four enablers (information systems, information sharing, information quality, and relationship quality), perceived VMI success, and
Factors Influencing the Effectiveness of Inventory Management.pdf
Effectiveness of inventory management is a vital part in the manufacturing organization to be more competitive. The previous studies have indicated that there are several factors influencing the effectiveness of inventory management in the organization but there is lack of researchers who carried out the research in the manufacturing small medium enterprise in Johor. Therefore, the purpose of this research is to identify the problem of inventory management faced by the manufacturing small medium enterprise and also to determine the factors that will influence the effectiveness of inventory management. In completing this research, 80 employees were selected randomly from the manufacturing small medium enterprise in Batu Pahat, Johor and they were requested to complete questionnaires. The result have shown that the problems of inventory management faced by manufacturing organization were underproduction, overproduction, stock out situation, delays in the delivery of raw materials and discrepancy of records. The factors, documentation/store records, planning, knowledge of employees/staff skill have shown to significantly influence the effectiveness of inventory management while the funds have shown slightly significant influence on the inventory management in manufacturing small medium enterprises. This quantitative study is important to the manufacturing organization in Malaysia because it provides the guidelines to the employers of manufacturing small medium enterprises in Batu Pahat, Johor.
IMPLEMENTATION OF VENDOR MANAGED INVENTORY: PRACTICES AND ISSUES
isara solutions, 2020
Purpose-The purpose of this paper is to analyze the before and after implementation of vendor managed inventory in selected organization. Design/methodology/approach-Methodology involve review of case studies on implementation of vendor managed inventory and hypothesis testing to find out the acceptance and rejection. Findings-Generic framework of vendor managed inventory implementation is been studied. Challenges and issues in implementing the process are described. Research limitations/implications-This research intends the original contribution in stream of supply chain research. This research is limited to the challenges of the implementing the VMI process, future research can involve the challenges of other side involved i.e supplier's side. Originality/value-The research is of original value and contribute in understanding the challenges and issues faced while implementing the process.
The Moderating Effect of Product Attributes in Vendor Managed Inventory (Vmi) Performance
Jurnal Teknologi
The suitability of product attributes forsuccessful VMI program has been discussed by numerous authors and but not concluded yet. This study is to explain the moderating effects of product attributestoward VMI performance. The data was gathered from 101 of suppliers in manufacturing companies. Data analysis was conducted by employing factor analysis, reliability test, and hierarchical multiple regressions. The findings show that only level of demand visibility is the main predictor of service performance. While, replenishment decision and inventory ownership were predictor to cost performance. The innovative product moderates the relationship between level of demand visibility and VMI performance. The functional product moderates the relationship between replenishment decision and service performance; and the relationship between inventory ownership and cost performance. Suppliers in manufacturing companies should urge their customer to share demand information when engaging in VMI...
Analysis of Inventory Management Performance – A Case Study
International Journal of Engineering Research and, 2017
The success of a product in today's global market place depends on capabilities of firms in the product's supply chain. Among these capabilities, effective inventory management is a capability necessary to lead in the global market place. The purpose of inventory management is to ensure availability of materials insufficient quantity as and when required and also to minimize investment in inventories. .This paper will therefore will help to understand the nature of inventory management of the supply store by applying suitable inventory management technique to the sample of the products of an enterprise which were more frequent in demand)
Key Success Factors of Vendor-Managed Inventory Implementation in Taiwan's Manufacturing Industry
Journal of Global Information Management, 2016
Under increasing pressure from competitors and consumers, vendor-managed inventory (VMI), which is believed to be conducive to reducing inventory costs and improving distribution and sales, has been a popular system particularly in the retail industry. This present study, by adopting the modified Delphi method, attempts to identify key success factors of VMI implementation in Taiwan manufacturing industry and examine impact of the identified factors. Through three rounds of expert questionnaires, it is found that excellent project management, organizational fit, information sharing, trialability, and top management commitment are the five most important factors in terms of VMI implementation in Taiwan manufacturing industry. Employee training, a good project team, exercise of power, and relative advantages are of secondary importance to Taiwan manufacturing industry. Finally, it is hoped that these identified factors may serve as a guide for manufacturing companies in implementing V...
2015
Effective inventory management provides a potential system nowadays to improve performance by matching inventory management practices and competitive advantages in the competitive world. Logistics networks, supply chain activities and inventory management practices are seen as a matter of survival and competitive advantage for an organisation.Studied conducted in the area of inventory management practices revealed that improper management may have been caused by various reasons such as the level of management commitment, the costs incurred and also the level of skills that the workers have.Inventory management across the supply chain is a big challenge for improving coordination among the value chain in the organizations.Controlling inventory is the need of the hour as it formulates the future of the business in terms of its success/failure as competition is intense, growing day-by-day.This research conceptualizes and develops the role of inventory management practices in fostering ...