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An evaluation of vendor managed inventory practices from small and medium indian enterprises

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  • Lixin Shen
  • Kannan Govindan
  • Atul B. Borade
  • Ali Diabat
  • Devika Kannan

Abstract

Vendor managed inventory has proven to be an effective tool for improving the supply chain performance by decreasing inventory-related costs and increasing customer service. It is quite evident from the literature that vendor managed inventory (VMI) has been successfully implemented in small and medium enterprises (SMEs). However, studies related to the implementation of VMI in Indian SMEs are very limited. Therefore, this study presents an empirical investigation of VMI practices in Indian SMEs using survey methodology. The paper evaluates the benefits, barriers, and effects of adopting VMI in Indian SMEs, and also investigates the IT tools and software used for VMI adoption. Furthermore, this study explores the dissimilarities among various sectors of SMEs adopting VMI. Based on the proposed methodology, it is found that organizational issues and unwillingness to share information are the major barriers. In terms of benefits, the major influencing variables are improved efficiency and improved channel relations.

Suggested Citation

  • Lixin Shen & Kannan Govindan & Atul B. Borade & Ali Diabat & Devika Kannan, 2013. "An evaluation of vendor managed inventory practices from small and medium indian enterprises," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(sup1), pages 76-95, June.
    • Handle: RePEc:taf:jbemgt:v:14:y:2013:i:sup1:p:s76-s95
    DOI: 10.3846/16111699.2012.749805
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    References listed on IDEAS

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    1. Dong, Yan & Xu, Kefeng & Dresner, Martin, 2007. "Environmental determinants of VMI adoption: An exploratory analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(4), pages 355-369, July.
    2. Wilson, Martha C., 2007. "The impact of transportation disruptions on supply chain performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(4), pages 295-320, July.
    3. Sari, Kazim, 2008. "On the benefits of CPFR and VMI: A comparative simulation study," International Journal of Production Economics, Elsevier, vol. 113(2), pages 575-586, June.
    4. Ruth Alas & Ants Kraus & Katrin Niglas, 2009. "Manufacturing strategies and choices in cultural contexts-super-1," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 10(4), pages 279-289, July.
    5. Holweg, Matthias & Disney, Stephen & Holmström, Jan & Småros, Johanna, 2005. "Supply Chain Collaboration:: Making Sense of the Strategy Continuum," European Management Journal, Elsevier, vol. 23(2), pages 170-181, April.
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    Cited by:

    1. Govindan, Kannan, 2015. "The optimal replenishment policy for time-varying stochastic demand under vendor managed inventory," European Journal of Operational Research, Elsevier, vol. 242(2), pages 402-423.
    2. Xianpei Hong & Wang Chunyuan & Lei Xu & Ali Diabat, 2016. "Multiple-vendor, multiple-retailer based vendor-managed inventory," Annals of Operations Research, Springer, vol. 238(1), pages 277-297, March.
    3. Xianpei Hong & Wang Chunyuan & Lei Xu & Ali Diabat, 2016. "Multiple-vendor, multiple-retailer based vendor-managed inventory," Annals of Operations Research, Springer, vol. 238(1), pages 277-297, March.

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