A Consumer Centric VMI Methodology for a Collaborative Supply Chain Model – An Answer to Demand Volatility

Part 2: Collaborative Environments and New Product DevelopmentInternational audienceThe increase in the market competitiveness and demand volatility is urging organizations to be more responsive to the customer needs. An out of stock scenario is a huge loss in the consumer products sector as it is a loss of revenue and a loss of brand loyalty which cannot be afforded. This raises the need for a consumer centric collaborative supply chain model. A Vendor Managed Inventory (VMI) practice is a collaborative inventory replenishment technique engaging the suppliers and the retailers. This paper proposes a next generation VMI methodology which is based on a cloud environment which can integrate the customer demand in the entire value chain. This would eventually result in higher customer service levels and inventory on-shelf availability. This proposed methodology has been implemented as a case study with one of the major clients, various parameters such as customer satisfaction and demand fluctuations were studied and compared with the present scenario. The methodology proposed here will benefit both sides of the supply chain (suppliers and retailers) by improving the visibility ultimately resulting in an improved collaborative supply chain model. This paper also intends to highlight the importance of collaboration of all role players in the entire end to end chain

Successful Inventory Management Strategies in the Office Supply Businesses

Some small and medium-sized retail office supply stores (SMROSS) owners lack successful inventory management strategies. SMROSS business owners rely on successful inventory strategies to minimize costs, maintain the correct inventory level, and avoid stockouts. Grounded in the conceptual framework of contingency theory and inventory modeling, the purpose of this qualitative multiple case study was to explore strategies business owners use to manage inventory efficiently. The participants included eight business owners of seven SMROSS in Ontario, Canada, who operated their businesses for more than 5 years and successfully implemented inventory management strategies. Data were analyzed from semistructured interviews and information from participants’ websites following Yin’s five-step process. Four themes emerged: inventory management efficiency, nurturing supply chain partner relationships, using information technology in inventory, and responsiveness to customer demand. A key recommendation is that SMROSS business owners maintain a stock level where storage cost is lowest while maintaining inventory to satisfy demand. The implication for positive social change includes the potential for SMROSS business owners to remain competitive by maintaining customer loyalty by meeting customer demand. By remaining viable, business owners could potentially expand their businesses and create employment opportunities for individuals in the community