Effective Vendor Managed Inventory (VMI) Implementation: Brief about Processes Involved and Requisites

Tarun Khatri; Sanjay Kumar; Abid Haleem

Effective Vendor Managed Inventory (VMI) Implementation: Brief about Processes Involved and Requisites

Tarun Khatri, Sanjay Kumar, Abid Haleem

Abstract

Vendor Managed Inventory (VMI) has been an important research area towards reducing demand variability in a supply chain. This paper emphasizes importance of VMI implementation for enhancing supply chain effectiveness. Literature review has been carried out to identify processes involved in effective VMI implementation. Through the review of the literature, it has been identified that the role of the customers has been pivotal in all business operations. VMI changes association and interactions’ nature among customers and supply chain members. Further, few requisites of VMI implementation have been explored and presented. Future research directions have been presented.

Keywords

Bullwhip Effect (BWE), Electronic Data Interchange (EDI), Information and Communications Technology (ICT), Role players, Vendor Managed Inventory Implementation (VMI)

Full Text:

PDF

References

Yao, Y. &Dresner, M. (2008). The inventory value of information sharing, continuous replenishment and vendor-managed inventory. Transportation Research Part E: Logistics and Transportation Review, 44(3), 361-378. http://dx.doi.org/10.1016/j.tre.2006.12.001

Disney, S. &Towill, D. (2003). The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains. International Journal of Production Economics, 85(2), 199-215. http://dx.doi.org/10.1016/s0925-5273(03)00110-5

Jung, S., Chang, T.W, Sim, E., &Parl, J. (2004). Vendor Managed Inventory and Its Effect in the Supply Chain, Asia simlnai 3398, 545–552.

Haleem, A., Kaushik, A., and Kumar, S., (2007). Modeling Bullwhip Effect and Understanding the Role of Information Sharing, Flexibility with Business Excellence in Knowledge Economy. Proceedings of 7th Global Conference on Flexible Systems Management, GloGIFT, Noida, 386-397.

Haleem, A., Kumar, S., and Agarwal, V. K., (2008). Supply Chain and Beer Game: Statistical Analysis Using Simulated Data, GLOGIFT 08, Eighth Global Conference on Flexible Systems Management, Flexible Enterprise for Global Business, Stevens Institute of Technology, Hoboken, New Jersey, USA, 1-16.

Khurana S., Khan J. and Mannan B., 2013, A study on Technology management Enablers& Barriers in its implementation in case of SMEs in India, Sustainability and development. Bloomsbury Publishing House.

Kuk, G. (2000). "When to speak again": Self-regulation under facilitation. Group Dynamics: Theory, Research, and Practice, 4(4), 291.

Davis, T. (1993). Effective supply chain management, Sloan Management Review, 34 (4), 35–47.

Khatri T., Duhan M., Kumar S., and Haleem A., 2015, Vendor Managed Inventory (VMI): Benefits, Challenges and Essentials in Implementation, Data Mining and Knowledge Engineering, 7(3), 248-252.

Wang, T.Y., & Huang, C.Y. (2007). Improving forecasting performance by employing the Taguchi method. European Journal of Operational Research, 176, 1052–1065.

Chopra, S. &Meindl, P. (2007). Supply chain management. Upper Saddle River, N.J.: Pearson Prentice Hall.

Kumar S. and Haleem A., 2016, Benchmarking Using an Index for Bullwhip Effect Mitigation, Uncertain Supply Chain Management, Vol. 4, No. 2, pp 15-25.

Lee, H. L., Padmanabhan, V., & Whang, S. (1997). Information distortion in a supply chain: The bullwhip effect. Management science, 43(4), 546-558.

Lee, H. L., Padmanabhan, V., & Whang, S. (2004). Information distortion in a supply chain: the bullwhip effect. Management science, 50(12_supplement), 1875-1886.

Kumar, S., and Haleem, A., (2006). Bullwhip Effect: Effect on Supply Chain Performance, Proceedings of National Conference on Emerging Trends in Technology and Management, Feb 18-19, GLAITM, Mathura, 98-105.

Kumar, S., and Haleem A., (2008a), Bullwhip Effect: A Brief Review, International Review of Mechanical Engineering, 2(1), 20-26.

Kumar, S., and Haleem, A., (2008b). Understanding Bullwhip Effect: A Literature Review Approach, Invertis Journal.of Science and Technology, 1(4), 231-240.

Zou, Y. and He, W. (2003). Complex science’s application in supply chain management. Advance in Technology and Countermeasure, 2:36–38.

Kumar, S., Kumar, N., & Haleem, A. (2015). Conceptualisation of sustainable green lean six sigma: an empirical analysis. International Journal of Business Excellence, 8(2), 210-250.

Angulo, A., Nachtmann, H., & Waller, M.A. (2004). Supply chain information sharing in a vendor managed inventory partnership. Journal of Business Logistics, 25(1), 101-120.http://dx.doi.org/10.1002/j.2158-1592.2004.tb00171.x

Waller, M., Johnson, M. E., & Davis, T., (1999), Vendor-managed inventory in the retail supply chain, Journal of Business Logistics, 20(1), 183-203.

Blatherwick, A. (1998). Vendor-managed inventory: fashion fad or important supply chain strategy? Supply Chain Management: An International Journal, 3(1), 10-11.

Dong, Y., & Xu, K. (2002). A supply chain model of vendor managed inventory. Transportation Research Part E, 38(2), 75-95. http://dx.doi.org/10.1016/S1366-5545 (01)00014-X.

Kumar S., Kumar N. and Haleem A., 2014, Contributions in Research in the Field of Innovation Management: Analysis of Critical Success Factors, Benefits and Risks, International Journal of Quality and Innovation, 2 (3/4), 310–337 (Inderscience Publishers).

Mannan, B., Khurana, S., & Haleem, A. (2012). Identification and analysis of critical factors of KM in project management: An interpretive structural modeling approach. In XVI Annual International conference of Society of Operation Management. Delhi: IIT; Lucknow: IIM.

Singh V., Bhudhiraja A., Kumar S. and Haleem A., 2013, Identification of Enablers of Knowledge Management: Literature Review Approach, International Conference on Advances in Mechanical and Computer Engineering, GITM, Bilaspur (India), 18-19 Jan, 2013.

Kumar S., Parveen and Haleem A., 2014, Modeling of Barriers to Technology Transfer Implementation Using System Approach, UdyogPragati, 38 (2), April-June, 2014, 1–11.;

Kumar, S., Luthra, S., & Haleem, A. (2014). Critical success factors of customer involvement in greening the supply chain: an empirical study. International Journal of Logistics Systems and Management, 19(3), 283-310.

Kumar, S., Garg, D., Luthra, S., and Haleem, A., 2014, Drivers of Poka Yoke in Indian automobile industry, International Conference on Advancements in Mechanical Engineering (ICAME-2014) at Department of Mechanical Engineering, Al-Falah University, Dhauj, Faridabad on August 07-08.

Singh, V., Kumar, S., Luthra, S., and Haleem, A., 2014 a, Knowledge Management (KM) Capabilities Towards Organizational Capabilities, NCRAEST 2014- National Conference on Recent Advances in Engineering, Science and Technologies, International Institute of Technology & Business, International Group of Institutions, Sonepat, Haryana, India on April 21, 2014.

Singh, V., Kumar, S., Luthra, S., and Haleem, A., 2014b, Performance Measures of Knowledge Management(KM): Identification Towards Excellence, Proceedings ofNational conference on recent advances in Science, Engineering and Technology, Delhi Technical Campus, Haryana, India on March 29, 2014, 58-63, ISBN: 978-93-5156-647-2.

Kumar, S., & Haleem, A., (2015). Evaluating bullwhip effect mitigation: an analytical network process (ANP) application. International Journal of advanced Research in Engineering Science and Management, 2(1) (October 2015),1-14.

Kumar, S., Luthra, S., Haleem, A. and Garg, D., 2014, Identifying Innovation Management Performance Indicators, NCRAEST 2014- National Conference on Recent Advances in Engineering, Science and Technologies, International Institute of Technology & Business, International Group of Institutions, Sonepat, Haryana, India on April 21.

Kumar, S., Luthra, S., Haleem, A. and Garg, D., 2014, Significance of knowledge management in operations management. XVIII Annual International Conference of the Society of Operations Management, Department of Management Studies, Indian Institute of Technology, Roorkee, India on December, 12-14.

Mannan, B., Khurana, S. & Haleem, A., (2016). Modeling of critical factors for integrating sustainability with innovation for Indian small- and medium-scale manufacturing enterprises: An ISM and MICMAC approach. Cogent Business & Management, 3(1), 1-15. http://dx.doi.org/10.1080/23311975.2016.1140318

Mannan, B., Khurana, S., & Haleem, A. (2015). Technological Innovation challenges and opportunities in India and the developing countries. 2015 Annual IEEE India Conference (INDICON), 1-6. http://dx.doi.org/10.1109/INDICON.2015.7443854.

Kaushik, A., Kumar, S., Luthra, S. and Haleem, A., 2014, Technology Transfer: Enablers and Barriers-A Review. International Journal of Technology, Policy and Management, 14 (2), 133–159 (Inderscience Publishers).

Parveen Rathee, Sanjay Kumar, Deepak Bhardwaj, Abid Haleem, 2013,

Barriers in Technology Transfer: A Brief Review, International

Journal of Research in Information Technology, 1 (8), 230-235.

Kumar S., Duhan M. and Haleem A., 2015, Mining of Factors to Enhance Productivity in Manufacturing Sector, Data Mining and Knowledge Engineering, 7 (3), 128-130.

Kumar S. and Haleem A., 2014, Knowledge Management in Indian Manufacturing Industry: Identification and Modeling of Enablers, Data Mining and Knowledge Engineering, 6(7), April-June, 2014, 298-306.

Kumar S., Luthra S., and Haleem A. (2013). Customer involvement in greening the supply chain: an interpretive structural modeling methodology, Journal of Industrial Engineering International, 9 (1), 1-13. doi:10.1186/2251-712X-9-6.

Pol, G.J., Inamdar. K.H. (2012). Framework to Implementation for Vendor Managed Inventory, International Journal of Engineering Research and Development, 2(3), 46-50.

Ngugi J K, Kiambati K.K. and Mugo H.W., (2012). The effect of Globalization on the Performance:Strategies of Commercial Banks in Kenya. Journal of Public Procurement and Contract Management, 1(2).

Jarial, S.K. & Garg, R.K., (2013) “Supplier Selection Model Using DBA Methodology – A Case Study to Car Automobile Industry” Aryabhatta J. of Maths & Info. 5 (1), 121-130.

Borade, A. &Bansod, S. (2009). Vendor managed forecasting: A case study of small enterprise. Journal of Industrial Engineering and Management, 2(1).http://dx.doi.org/10.3926/jiem.2009.v2n1.p153-175

Malone,T.W., Yates,J., Benjamin,R.I.,(1987).Electronic markets and electronic hierarchies, Communications of the ACM, 30 (6), 484– 497.

Fisher, M. L., Hammond, J. H., Obermeyer, W. R., & Raman, A. (1994). Making supply meet demand in an uncertain world. Harvard business review, 72, 83-83.

Palmer, J. W., & Markus, M. L. (2000). The performance impacts of quick response and strategic alignment in specialty retailing. Information Systems Research, 11(3), 241-259.

Dong, Y., Xu, K., &Dresner, M. (2007). Environmental determinants of VMI adoption: An exploratory analysis. Transportation Research Part E, 43(4), 355-369.http://dx.doi.org/10.1016/j.tre.2006.01.004

Sandeep, K., Sanjay, K., Pardeep, G., & Abid, H. (2013). Analysis of interdependence among the enablers of green concept implementation in Indian automobile supply chain. Journal of Engineering.

Zhang, T., Liang, L., Yu, Y., & Yu, Y. (2007). An integrated vendor-managed inventory model for a two-echelon system with order cost reduction. International Journal of Production Economics, 109(1), 241-253.

Bendoly, E. and Jacobs, F. R. (2005).Strategic ERP Extension and Use. Palo Alto. Stanford University Press.123-126.

Clifford Defee, C., & Stank, T. P. (2005). Applying the strategy-structure-performance paradigm to the supply chain environment. The International Journal of Logistics Management, 16(1), 28-50.

Claassen, M. J., Van Weele, A. J., & Van Raaij, E. M. (2008). Performance outcomes and success factors of vendor managed inventory (VMI). Supply Chain Management: An International Journal, 13(6), 406-414.

Han, Q. (2014). Study on Application of Vendor Managed Inventory Model. AMR, 989-994, 1481-1484. http://dx.doi.org/10.4028/www.scientific.net/amr.989-994.1481

Srivastava, S. (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Reviews, 9(1), 53-80. http://dx.doi.org/10.1111/j.1468-2370.2007.00202.x

Rao, P. & Holt, D. (2005). Do green supply chains lead to competitiveness and economic performance. IntJrnl of Op & Prod Mnagemnt, 25(9), 898-916. http://dx.doi.org/10.1108/01443570510613956

Luthra S., Garg D., Kumar S., Haleem A. (2012). Implementation of The Green Supply Chain Management in Manufacturing Industry in India using Interpretive Structural Modeling Technique. BPR Technologia: A Journal of Science, Technology & Management, 1(1), 1-17, ISSN: 2278-8387.

Kumar, S., Luthra, S., Haleem, A., Garg, D. and Singh, S., 2014, Understanding requisites of product innovation management: An ISM approach. 11th World Congress of Academy for Global Business Advancement (AGBA), Indian Institute of Technology, Delhi, India on November, 21-23.

Kumar S., Ahlawat V. and Haleem A., 2014, Knowledge Management-Enablers and Barriers: A Questionnaire Based Study, International Journal of Knowledge Engineering and Data Mining, 3 (1), 31–57 (Inderscience Publishers).

Haleem, A., and Kumar, S., (2007), Effective Information Sharing for Reducing Bullwhip Effect: A Simulation Based Study, International Journal of Computer Science and System Analysis, 1(2), 111-128.

Kumar S., Singh V. and Haleem A. (2015). Critical Success Factors of Knowledge Management: Modeling and Comparison Using Various Techniques. International Journal of Industrial and Systems Engineering, 21(2), 180-206.

A. Rathee, S. Kumar, A. Haleem, 2013, Identification of Barriers of Poka-Yoke: A Review, Proceedings of National Conference on Futuristic Trends in Mechanical Engineering & Nano Technology held on 15-16 Nov., 2013, Rawal Institute of Engineering & Technology, Faridabad, 156-161.

Kumar, S. (2014b). Some application of analytic hierarchy process. Data Mining and Knowledge Engineering, 6(9), 382-384.

Refbacks

There are currently no refbacks.

This work is licensed under a Creative Commons Attribution 3.0 License.

Username
Password
Remember me