2016 article
Vendor-managed inventory systems in the apparel industry
INFORMATION SYSTEMS FOR THE FASHION AND APPAREL INDUSTRY, Vol. 179, pp. 221–234.
The changing retail scenario creates problems for the retailers as well as the manufacturers in terms of managing over-stocking and under-stocking costs. Since 2005, multiple strategic partnership schemes have been researched and implemented to optimize the supply chains. One such strategy has been vendor-managed inventory (VMI). However, the benefits to the supply chain are determined by the extent of implementation of a VMI model. This chapter reviews the VMI relationship between a garment manufacturer and its downstream customers, and it explores the enablers that help a vendor advance from a basic-level VMI relationship to a higher level. This study also looks at the ways in which a VMI model is beneficial to the supplier company.