Title: Towards supply chain collaboration: an operations audit of VMI initiatives in the electronics industry

Authors: Jennifer Blackhurst, Christopher W. Craighead, Robert B. Handfield

Addresses: North Carolina State University, College of Management, Department of Business Management, Campus Box 7229, Raleigh, NC 27695–7229, USA. ' Auburn University, Department of Management, Lowder Building, Suite 401, Auburn University, AL 36849, USA. ' Bank of America University Distinguished Professor of Supply Chain Management, North Carolina State University, College of Management, Campus Box 7229, Raleigh, NC 27695–7229, USA

Abstract: Recently, there has been an increased focus on supply chain collaboration efforts such as Vendor-Managed Inventory (VMI). Often, supply chain partners have experienced gaps between desired and actual performance in working towards a successful collaborative relationship. In this research, we analysed two VMI initiatives that have not yet produced the level of performance desired by the supply chain partners involved. In each case, an operations audit was performed to determine where characteristic and performance gaps existed. The output of this research effort is inherent in the operations audit process employed, the VMI initiative gaps discovered during the process as well as the steps that could be undertaken to minimise or eliminate these gaps. The paper culminates in a framework that describes the operations audit in terms of an iterative, collaboration evaluation process. The framework and process can serve as valuable mechanisms for understanding the evolution towards collaborative supply chain relationships.

Keywords: supply chain management; SCM; supply chain collaboration; vendor-managed inventory; forecasting; case research; empirical research; information sharing; electronics industry; operations audit.

DOI: 10.1504/IJISM.2006.008340

International Journal of Integrated Supply Management, 2006 Vol.2 No.1/2, pp.91 - 105

Published online: 05 Dec 2005 *

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