Determinants of successful vendor managed inventory practice in oligopoly industries
by Eric Deakins, Kim Dorling, John Scott
International Journal of Integrated Supply Management (IJISM), Vol. 4, No. 3/4, 2008

Abstract: Action research utilising soft systems methodology was used to identify the key Management-level determinants of successful Vendor Managed Inventory (VMI) and strategic supply chain relationships, for firms operating in industries characterised by oligopolistic competition. The resulting step-wise framework and practical guidelines detail the actions needed to be taken by managers to maximise the benefits of such collaboration; benefits that can include significantly reduced inventories and purchasing activities, reduced bullwhip effect, increased inventory turns and solidified customer-vendor relationships. While being particularly relevant to highly concentrated food industries, the developed framework provides a model for all practitioners to follow when considering whether, and how, to establish and nurture successful VMI and strategic supply chain relationship practices.

Online publication date: Tue, 14-Oct-2008

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