Effective ‘Strategic Implementation’ of Vendor-Managed Inventory (VMI) through Hierarchization of Identified Requisites: A Study with Automobile Sector of India

Vendor Managed Inventory (VMI) is being looked upon as an effective tool to reduce the demand variability of an Industrial supply chain. This can also help in reducing the corresponding bullwhip effect. This paper tries to explore the importance of VMI implementation in the context of Indian automotive sector.

The effective implementation of VMI has been through the development of the hierarchal analysis of requisites. AHP has been taken as a tool for hierarchization. A sub-classification of these requisites has also been undertaken. A literature review has been amalgamated with industry experiences to understand the effective VMI implementation in the automobile sector. Classification of rRequisites and respective sub-requisite classification with references in respect to effective VMI implementation are provided. This has helped in the prioritisation of these requisites through AHP, and an action plan for VMI Implementation is provided.

Research implications also provide the outcome of the findings and its implication to the sector.

Discussions provide inputs to future studies. This paper may help academicians along with industry professionals to understand issues involved in VMI implementation, specifically for the automobile sector