Towards supply chain collaboration: an operations audit of VMI initiatives in the electronics industry
by Jennifer Blackhurst, Christopher W. Craighead, Robert B. Handfield
International Journal of Integrated Supply Management (IJISM), Vol. 2, No. 1/2, 2006

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.

Online publication date: Mon, 05-Dec-2005

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