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

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.

Keywords:

• vendor managed inventory
• Indian SME's
• benefits
• operational issues
• barriers
• factor analysis
• IT tools

JEL Classification:

• C38
• L29
• L60
• L80

Additional information

Notes on contributors

Lixin Shen

Lixin SHEN, Associate Professor at Dalian Maritime University in Dalian, China, has published 30 papers in Journals and Conferences. Her research includes Logistics and e-commerce.

Kannan Govindan

Kannan GOVINDAN, Associate Professor at University of Southern Denmark, Denmark, has published more than 80 papers in international journals and more than 60 papers in conferences. His current research includes logistics and supply chain management (SCM), Sustainable SCM, Corporate responsibility and environmental SCM.

Atul B. Borade

Atul B. BORADE, Professor at Jawaharlal Darda Institute of Engineering and Technology, India, has published 25 papers in journals and conferences. His areas of interest are Manufacturing Management and Supply Chain Management.

Ali Diabat

Ali DIABAT, Associate Professor at Masdar Institute of Science and Technology, Abu Dhabi, UAE, has published 20 papers in journals and conferences. His areas of interest are Industrial Engineering and Supply Chain Management.

Devika Kannan

Devika KANNAN, graduate student at Aalborg University, Denmark, has published more than 25 papers in international journal and conferences. Her current research includes supply chain management (SCM), green supply chain management, and reverses logistics.