Vendor Managed Inventory

3809 Words16 Pages
Vendor Managed Inventory Submitted By: Kasim Najmi Table of Contents 1. 2. 3. 4. Abstract Executive Summary Present state of art: Rise in Information Technology Methodology 4.1 Inventory Minimum and Maximum Levels 4.2 VMI Agreement 4.3 VMI Financial Effects Challenges Faced in Implementing VMI Advantages 6.1 Supplier Side 6.2 Customer Side Empirical Study 7.1 Research Design 7.2 Source of Data 7.3 Observations Conclusion 5. 6. 7. 8. ABSTRACT The present trend that can be seen in many organizations is that most of the goods are outsourced through suppliers with superior processes and services. Vendor Managed Inventory is one such process that is becoming popular. The history of Vendor Managed Inventory starts in the 1980s when mass retailers started to require their suppliers to take control of the inventory management. The rest is history and now Vendor Managed Inventory process is becoming an integrated part of any manufacturing firm. It provides many advantages but poses many challenges in its implementation. In this emerging and integrated economy, different strategies are being devised through different supply chain processes. This makes mandatory for any organization to optimize their supply chain from suppliers to customers. This research paper focuses on different problems and challenges faced by organizations to implement and carry out Vendor Managed Inventory process and weigh out its disadvantages with advantages. The paper will include real time challenges faced by organizations like Mahindra & Mahindra Ltd. to implement Vendor Managed Inventory process and will also cover the possibility of diversification of the said process into various fully integrated supply chains. It will not only cover the challenges faced by organization but will also cover the real time challenges faced by global suppliers like lighting giants Varroc
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