Vendor Managed Inventory System Adaptability: A supply chain management analysis

Abstract

The VMI (Vendor Managed Inventory) system has been used as a sophisticated logistics system to provide adequate assistance to some large retailers. Despite this, the VMI system is currently limited to the retail industry and does not have access to the VMI system in other industries. In order to make up for this gap, this paper analyzes the feasibility of the VMI system in other industries and companies, and further determines the VMI system as a boost for other industries through three conditions. This article provides sufficient evidence for the research method through case analysis to further determine the feasibility and correctness of the research method. As the results of the study show, companies that meet these three conditions can significantly improve the company's logistics efficiency and reduce the company's storage costs when using the VMI system. Keywords—VMI system; logistics; company efficiency;