Title: Implementation of vendor-managed inventory in hospitals: an empirical investigation

Authors: Manish Mohan Baral; Subhodeep Mukherjee; Ramji Nagariya; Venkataiah Chittipaka

Addresses: Department of Operations, GITAM School of Business, GITAM (Deemed to be University), Visakhapatnam, Andhra Pradesh, India ' Department of Operations, GITAM School of Business, GITAM (Deemed to be University), Visakhapatnam, Andhra Pradesh, India ' School of Business and Management, CHRIST (Deemed to be University), Delhi-NCR, Ghaziabad, Uttar Pradesh, India ' School of Management Studies, Indira Gandhi National Open University, Delhi, India

Abstract: This research aims to determine critical success components for implementing the vendor-managed inventory (VMI) and test their influence on the inventory in Indian hospitals. The independent and dependent components of the research are identified from the extensive literature review. The independent variables are top management commitment, supply chain strategy, business process integration, continuous improvement, resource sharing, and information technologies adoption. The dependent variable identified is the adoption of vendor-managed inventory. The study results suggest that the proposed latent variables significantly impact the VMI and significantly contribute to VMI's implementation and sustainability. The study highlights the importance of VMI in Indian hospitals, and therefore, it will help the management focus on the VMI for enhanced operational efficiency. Previous studies have not empirically tested the impact of the suggested practices for VMI in Indian hospitals. The analysis would help evaluate VMI adoption in Indian hospitals.

Keywords: vendor-managed inventory; VMI; critical success components; hospitals; structural equation modelling; SEM.

DOI: 10.1504/IJPM.2024.141544

International Journal of Procurement Management, 2024 Vol.21 No.2, pp.180 - 197

Received: 30 Apr 2023
Accepted: 07 May 2023
Published online: 23 Sep 2024 *

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