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Determinants of successful vendor managed inventory practice in oligopoly industries

Author

Listed:
  • Eric Deakins
  • Kim Dorling
  • John Scott

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.

Suggested Citation

  • Eric Deakins & Kim Dorling & John Scott, 2008. "Determinants of successful vendor managed inventory practice in oligopoly industries," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 4(3/4), pages 355-377.
    • Handle: RePEc:ids:ijisma:v:4:y:2008:i:3/4:p:355-377
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