Study of vendor‐managed inventory practices in Indian industries

Abstract

PurposeIn the global economy, vendor‐managed inventory (VMI) is gradually becoming an important element of supply chain management strategy of organizations. Recently, Indian industries, both large and small, have started adopting VMI for their supply chains. The purpose of this paper is to investigate apparent differences among large and small industries in terms of objectives, drivers, obstacles and impacts of VMI in Indian context.Design/methodology/approachA survey was conducted to examine organizational objectives, strategic drivers, obstacles and affected operations pursuant to VMI adoption. By reviewing the literature, four hypotheses were formed and tested from the responses.FindingsIt is observed that both large and small industries in India have started adopting VMI for improving the business performance. Results clearly indicate that adoption factors are different in large and small industries.Originality/valueThe paper explores current practices with respect to VMI in Indian industries. The analysis would be useful for the developing VMI adoption strategies in Indian context.

Impact of critical success factors on successful technology implementation in Consumer Packaged Goods (CPG) supply chain

“…Though, the earlier studies in other sectors have emphasized that implementation success depends on choosing the right technology & product for the organization (Annamalai et al, 2013) along with information security framework (Borade et al, 2010).…”

“…The same is presented in Table 1. Annamalai et al, 2013;Singh 2013;Ngai et al, 2008;Stanley et al, 2006;Bhatti 2005;Favilla et al, 2005;Haleem et al, 2012 2 Organization's willingness and commitment (C2) Hammant, 1997;Damien, 2005;Kumar et al, 2016 3 Alignment between Information Technology (IT) and business objectives (C3) Upadhyay et al, 2011;Chang, 2006;Done et al, 2011;Kolbusak-McGee 1998 4 Proper IT investment justifications (C4) Sandhu et al, 2012;Upadhyay et al, 2011 5 Change management initiatives (C5) Bozarth, 2006;Saini et al, 2013;Sandhu et al, 2012;Hoffer et al, 1998 6 Trust between supply chain partners (C6) Paul, 2003;Laeequddin et al, 2012;Anbanandam et al, 2011;Stanley et al, 2008;Norris et al, 2001;Jharkharia et al, 2005;Buxmann et al, 2004;Olorunniwo et al, 2010;Borade et al, 2010;Sahay et al, 2003;Pomponi et al, 2015 7 Cooperation and commitment of supply chain partners (C7) Fynes et al , 2005;Flynn et al, 2010;Park et al,2001 8 Cultural alignment among partners (C8) Thakkar et al, 2008;Gunasekaran et al, 2013 9 Investment in IT infrastructure by supply chain partners (C9) Kannabiran et al, 2012;S...…”

An Evaluation of Vendor Managed Inventory Practices From Small and Medium Indian Enterprises

“…In accordance with its operating aim, the paper briefly pinpointed the legal issues of the agreement, and focused on the technical features and service level agreements. Borade and Bansod (2010); carried out a study about VMI practices in an Indian context which investigated the differences among large and small industries. It was observed that adoption factors were different in large and small industries.…”

Optimizing a bi-objective inventory model for a two-echelon supply chain management using a tuned meta-heuristic algorithm

“…Afterwards, Darwish and Odah (2010) extended a VMI model for several retailers such that the vendor faced the penalty if items exceeded definite bounds, and then they presented an algorithm that reduced the computational efforts significantly. Additionally, Borade and Bansod (2010) provided a case study to employ VMI in Indian industry. Finally, Pasandideh, Niaki, and Nia (2011) proposed a one-vendor oneretailer VMI model with two constraints, namely the number of orders and the warehouse space; then, they used a genetic algorithm (GA) for solving their proposed model.…”