VENDOR MANAGED INVENTORY-FAD OR FUTURE?

摘要

Vendor Managed Inventory (VMI) was introduced by customers as a way of reducing administrative cost, time and working capital, by moving the responsibility of stock servicing to their vendors. This has been particularly successful for low value consumable items, but has lead to double stocking and additional costs to the supply side. To some extent it is now losing favour in the automotive sector. This article suggests that the concept can be rejuvenated and the scope greatly extended to include all parties in the supply chain. Once this has been achieved it can then be used to make supply chain planning and scheduling more effective with significant benefits to all parties in the supply chain.