Analysis of vendor managed inventory practices for greater supply chain performance

For a globalised supply chain to be responsive, the firm should have the ability to meet short lead times, respond to wide ranges of quantities demanded, handle a large variety of products, build highly innovative products and meet a very high service level. Vendor managed inventory (VMI) is one such supply chain practice where the vendor is given the sole responsibility to monitor and manage the inventory of the retailer. This paper attempts to analyse this supply chain practice and illustrate the key elements of this system and the role it plays in the overall supply chain. The benefits and risks of the VMI system are also analysed. The design and implementation steps for this supply chain practice are extensively reviewed. The analysis of industries which would benefit from implementing this system is also conducted. An investigation is attempted to see if any industries in the UAE are using VMI

Determinants of fifth party logistics (5PL): Service providers for supply chain management

The theory and practice of a networked approach to Supply Chain Management (SCM) are used to trace the evolution of management logistics. Reforming infl uences on competitive forces have deregulated, globalised and innovated, changing fundamentally the conception and practice of SCM. Increased need for strong interfirm networks, among other trends, seems formative. Changed purchasing and customer service functions result in new management methods, business contexts and transportation modes. Radical advances in managing supply chains stem from electronic commerce, notably in transportation and distribution, now widely adopted. Hence, managing logistics services becomes basic to businesses' competitiveness. Economic imperatives, technological innovations, market competition and managerial ability to provide advanced logistics services is encouraging increased trust between firms and their SCM providers. Issues and future trends are prompting the outsourcing of Fourth Party Logistics (4PL) services are identified. Possible future '5PL' services are meta-analytically indicated, with future empirical research suggestions based on novel insights. Copyright © 2012 Inderscience Enterprises Ltd