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1 Department of Mechanical and Manufacturing Engineering, The Faculty of Engineering and Science, Aalborg University, VBN 2 The Faculty of Engineering and Science, Aalborg University, VBN 3 Transportation Management College, Dalian Maritime University, China 4 Århus University, Department of Economics and Business 5 Jawaharlal Darda Institute of Engineering and Technology 6 Department of Systems Management and Engineering, Pukyong National University, Busan
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. © 2013 Copyright Vilnius Gediminas Technical University (VGTU) Press Technika.
Journal of Business Economics and Management, 2013, Vol 14, Issue SUPPL1, p. 76-95
barriers; benefits; factor analysis; Indian SME's; IT tools; operational issues; vendor managed inventory
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