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1 2012

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A process framework for implementing vmi on the demand side

Reitner K., Wetzlinger W., Ortner W.

Research in Logistics & Production

2012

Vol. 2, No. 1

31-42

Constantly, increasing customer requirements and changing market conditions require companies to collaborate with supply chain partners. Therefore, supply chain concepts like Vendor Managed Inventory (VMI) are now applied in various industries. Although VMI has become well-known in recent years, only a few companies plan, optimize, coordinate and implement processes with partners of the supply chain. Especially small and medium enterprises (SMEs) do not coordinate business processes with their suppliers, because it is very difficult for SMEs to estimate the effects of the implementation of VMI on their business processes. This paper focuses on a framework for integrating such a supply chain concept into the business processes on the demand side. To support the VMI implementation a process reference model with best practice processes is needed. Therefore, an extended process reference model LogWIN-P_VMI was developed, which helps companies to estimate the effects of VMI on their business processes.