Title: Analysis of vendor managed inventory practices for greater supply chain performance

Authors: Jim Felix Joseph, Balan Sundarakani, Peter Hosie, S. Nagarajan

Addresses: MACH Air Cargo FZE, D-23, Dubai Airport Free Zone, P.O. Box 54480, UAE. ' Faculty of Business and Management, University of Wollongong in Dubai, Block 14, Room 123, Knowledge Village, Dubai, UAE. ' Faculty of Business and Management, University of Wollongong in Dubai, Block 15, Knowledge Village, Dubai, UAE. ' Department of Mechanical Engineering, Vickram College of Engineering, Sivagangai, Enathi-653061, India

Abstract: 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.

Keywords: globalised supply chains; SCM; supply chain management; performance measurement; vendor managed inventories; VMIs; UAE; United Arab Emirates; responsiveness; lead times; customer demands; order quantities; product variety; innovative products; innovation; service levels; inventory monitoring; retailers; retailing; Abu Dhabi; Dubai; logistics; economics; globalisation; operational excellence; business excellence.

DOI: 10.1504/IJLEG.2010.037518

International Journal of Logistics Economics and Globalisation, 2010 Vol.2 No.4, pp.297 - 315

Published online: 15 Dec 2010 *

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