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Digitized VMI - maturity model for the FMCG sector

Johannes Dirnberger, Uwe Brunner and Helmut E. Zsifkovits

A chapter in Digitalization in Maritime and Sustainable Logistics: City Logistics, Port Logistics and Sustainable Supply Chain Management in the Digital Age, 2017, pp 287-309 from Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management

Abstract: Optimized stocks and lean processes are prerequisites in order to keep up with the increasing consumption of goods and limited storage areas in cities due to urbanization. This paper, therefore, develops a maturity model to increase the dissemination rate of Digitized VMI to optimize supply chains in the FMCG sector. Firstly, criteria for successful VMI application are identified by literature research and expert interviews. Moreover, the respective target state descriptions are defined. Secondly, an assessment scheme is integrated. Finally, a procedure model to identify company-specific operational factors is developed. The research establishes requirements for successful VMI application in the FMCG sector within four generic categories and a specific one. It has been found that company-specific operational factors are particularly relevant in this context. Therefore, the specific fifth category is described by a procedure model to identify those factors. Current VMI models are generalistic and describe potential components of VMI, contract contents and relevant processes. However, a model addressing the barriers for VMI application ex ante and taking company-specific operational factors into account is pending. The VMI Maturity Model is practically applicable, since it has been tested at a company in the FMCG sector. It turned out, that assessing the VMI Maturity Level supports companies in identifying specific areas for improvements in advance of VMI implementation.

Keywords: FMCG; vendor managed inventory (search for similar items in EconPapers)
Date: 2017
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