Inventory Management Practices and Its Effects on Vendor Managed Inventory Performance

Radzuan, Kamaruddin; Rahim, Mohd Kamarul Irwan Abdul; Anuar, Herman Shah; Nawi, Mohd Nasrun Mohd; Osman, Wan Nadzri

doi:10.1166/asl.2015.6228

Cited by 3 publications

(6 citation statements)

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“…The fundamental concept of VMIS is that a vendor manages a retailer's inventory on the retailer's premises [19]. It involves a vendor having access to inventory level information and managing expected customer demand, sales, advertising activities, and replenishment policy [20]. VMIS is one of the most widely accepted e-retail inventory management techniques, employed to enhance supply chain efficiency and meet customer service and satisfaction expectations.…”

Section: Vendor Managed Inventory System (Vmis)mentioning

confidence: 99%

“…Operating under VMIS provides e-retailers with a competitive advantage in terms of higher product availability and market productivity [21], cost reduction and higher customer service levels [22]. Lowered inventory levels, faster inventory turns, reduced ordering, lower administrative costs, increased sales, reduced stock-out costs and reduced demand uncertainty are all perceived as benefits of introducing VMIS [20][21][22].…”

Section: Business Management and Accountingmentioning

confidence: 99%

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Electronic inventory control systems as a competitive tool for e-retailers

et al. 2022

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Despite technological advances, some e-retail organisations are still struggling to improve their inventory control performance due to a limited application of such technology, a lack of relevant skills and inadequate supply chain management policies. This article explored how EICS can enhance the competitiveness of an online retailer. Adopting the qualitative paradigm, data was collected through semi-structured interviews. Consequently, data analysis entailed identifying common patterns within the responses and critically analysing them to achieve the research objectives. The findings revealed that with the implementation of EICS, the organisation could oversee inventory stock cycle transactions, perform a transparent inter-branch transfer and security control. Also, the vital competitive advantages, achieved through EICS implementation, include high customer satisfaction due to faster system services rendered than previously. Likewise, a rise in customer service efficiency and higher customer loyalty rates. In sum, this research supports the idea that EICS technology is an essential ingredient for e-retailers to thrive and compete. A major recommendation is for e-retailers to clearly define the attributes and metrics of their inventory control performance in line with inventory control objectives as the EICS competitiveness framework.

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Section: Vendor Managed Inventory System (Vmis)mentioning

confidence: 99%

Section: Business Management and Accountingmentioning

confidence: 99%

Electronic inventory control systems as a competitive tool for e-retailers

et al. 2022

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“…While the literature classify and examine various VMI dimensions (Hong et al, 2016;Radzuan et al, 2015;Torres et al, 2014;Dong et al, 2014), a few incorporate trust as an influential factor and yet none look into the VMI relationship from a dependence perspective. This study investigates the dependence of the buyer on the supplier in a VMI relation with respect to trust that has to exist in a collaborative relationship between the upstream and downstream supply chain members (Ozer et al, 2011;Ayadi et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

“…Adoption of vendor managed inventory (VMI) has steadily been on the rise in buyer-supplier relationships (Radzuan et al , 2015) and according to a survey conducted among executives where 73 percent of respondents were from Fortune 1,000 companies, the VMI adoption rate reached 70 percent (E2open, 2015). E2open study also reports that while “the visibility into time-sensitive data continues to be a struggle,” “there is a sustained demand for better inventory management collaboration” perhaps because the same study reports that 31 percent of the executives report below-average levels of VMI collaboration with their trading partners.…”

Section: Introductionmentioning

confidence: 99%

“…Recent studies provide comprehensive reviews of the extant VMI-related literature (Govindan, 2013; Akhbari et al , 2014) that explicate the benefits and how supply chain partners need to adjust the parameters within a VMI setting in order to ensure a successful relationship. While the literature classify and examine various VMI dimensions (Hong et al , 2016; Radzuan et al , 2015; Torres et al , 2014; Dong et al , 2014), a few incorporate trust as an influential factor and yet none look into the VMI relationship from a dependence perspective. This study investigates the dependence of the buyer on the supplier in a VMI relation with respect to trust that has to exist in a collaborative relationship between the upstream and downstream supply chain members (Özer et al , 2011; Ayadi et al , 2013).…”

Section: Introductionmentioning

confidence: 99%

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Post-implementation analysis: dependence and trust in VMI context

Yalcin

Özpolat

Schniederjans

2018

IJPDLM

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Purpose-More than two decades long technological improvements in information sharing have not yet ensured a flawless execution of vendor managed inventory (VMI) and left interested parties wondering about the reasons of poor results. Although VMI is a collaborative tool, the relational factors in a VMI setting have not received enough attention due to challenges in obtaining relational buyer-supplier data in addition to extant focus on analytical approaches. In this paper, post-implementation relational factors are investigated in order to extract relevant insights. Design/methodology/approach-Accounting for the duration of the VMI relationship, we focus on two dimensions of VMI often ignored post-implementation: dependence of the buyer on the VMI-supplier and trust of the buyer in the VMI-supplier. Cross-sectional data were collected using a survey collected from distributors mostly in auto and electrical supply industries, which have their inventories managed by manufacturers through VMI arrangements. The sample was obtained from a leading third-party VMI-platform service provider that serves thousands of distributormanufacturer locations with billions of dollars in sales orders. Multiple Ordinary-Least-Squares (OLS) regression has been used to test the hypotheses. Findings-This paper provides empirical support that in the post-implementation stage, longer VMI relationships are associated with higher distributor dependence on the manufacturer. In addition, too much dependence could actually hurt the distributor's trust in the manufacturer. Practical implications-We propose that distributors maintain some of the purchasing and inventory management skills in house to limit their dependencies on the manufacturers. Manufacturers should also invest in trust-building activities, such as regular communications with distributors. Originality/value-This is the first study providing empirical evidence on the (i) positive association between length of VMI relationship and buyer dependence on the supplier, and (ii) curvilinear dependence-trust link in a postimplementation VMI context.

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Influence of Lean Inventory Management Techniques on Performance of Manufacturing Firms in Nairobi City County Kenya

RONO,

MIROGA (Ph.D)

2019

strategicjournals.com

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Procurement managers are bound to embrace the essence of adopting lean production which is a business initiative to reduce waste in manufacture production. To this extent therefore, this initiative leverage companies to achieve long term competitive advantages by putting in place the proper production systems and technologies particularly with regard to product quality, shortening product design time, the reducing of wastage improving end customer satisfaction and inventory management. The study was guided by the following objectives, the material requirement planning, the just in time technique, Analysis based costing and vendor managed inventory. The research objectives and research questions set out and the scope of study limited to manufacturing firms in Nairobi County, Kenya. The research used descriptive research design. Data was analyzed using both descriptive and inferential statistics where regression analysis was used to establish the effect of independent variables on the dependent variable. The population was 455 respondents drawn from manufacturing firms in Nairobi County with a sample size population of 213. The data was analyzed with SPSS version 23. The study findings showed that the four variables had a significant influence on firm performance. The study recommended that a similar research should be conducted with an aim at investigating the effects of inventory management techniques on firms' performance with other variables or of other firms in other sectors, including the service industry in the Kenyan market. The study indicated that there had been limited amount of research on effects of lean inventory management techniques on firms' performance of manufacturing firms in Kenya. Thus, the findings of this study served as a basis for future studies on lean inventory management. The lean inventory management techniques and firm performance of manufacturing firms had not been widely studied which presented gaps in African and Kenyan contexts.

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Inventory Management Practices and Its Effects on Vendor Managed Inventory Performance

Cited by 3 publications

References 0 publications

Electronic inventory control systems as a competitive tool for e-retailers

Electronic inventory control systems as a competitive tool for e-retailers

Post-implementation analysis: dependence and trust in VMI context

Influence of Lean Inventory Management Techniques on Performance of Manufacturing Firms in Nairobi City County Kenya

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