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Vendor Managed Inventory and Strategy: Case Study of Global Supply Chains

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  • Alan D. Smith

    (Robert Morris University, USA)

Abstract

Vendor-managed inventory (VMI) may be perceived as a business agreement between a supplier and a buyer in which the supplier manages the customer's inventory for a fee. The purpose of this paper is to examine potential and current VMI relationships between two large Pittsburgh-based companies, mostly from a global reach perspective. The initial findings of the research show that not implementing a VMI system could potentially hurt these companies, while supporting the basic research proposition that VMI will increase customer satisfaction ratings and revenues for both companies. Within this case study, there are several main questions throughout the paper. These questions are what are the goals in the case study of supply chain management (SCM) in terms of their operations? How will these goals affect the operations? What are the different perspectives from the buyer and supplier? Will the need to implement a global SCM strategy continue to exist, especially under the pressures of Covid-19?

Suggested Citation

  • Alan D. Smith, 2020. "Vendor Managed Inventory and Strategy: Case Study of Global Supply Chains," International Journal of Sustainable Economies Management (IJSEM), IGI Global, vol. 9(3), pages 1-20, July.
    • Handle: RePEc:igg:jsem00:v:9:y:2020:i:3:p:1-20
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