Title: Determinants of successful vendor managed inventory practice in oligopoly industries

Authors: Eric Deakins, Kim Dorling, John Scott

Addresses: Department of Management Systems, University of Waikato, Hamilton 4032, New Zealand. ' Griffins Foods Ltd. and Tegel Foods Ltd., Auckland, New Zealand. ' Department of Management Systems, University of Waikato, Hamilton 4032, New Zealand

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.

Keywords: supply chain management; SCM; VMI; vendor managed inventory; NZ; New Zealand; food industries; oligopoly industries; integrated supply management; soft systems methodology; supply chain relationships.

DOI: 10.1504/IJISM.2008.020759

International Journal of Integrated Supply Management, 2008 Vol.4 No.3/4, pp.355 - 377

Published online: 14 Oct 2008 *

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