Determinants of successful vendor managed Inventory practice In oligopoly industries

摘要

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.