Vendor Managed Inventory : Pilot for Fiskars Home Sourcing Unit
Kervinen, Minna (2013)
Kervinen, Minna
Savonia-ammattikorkeakoulu
2013
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2013053112264
https://urn.fi/URN:NBN:fi:amk-2013053112264
Tiivistelmä
Just in time principles and vendor managed inventory model are part of today’s supply chain management. These models are utilized in order to have successful and effective supply chain. This thesis concentrates on inbound logistics operations of supply chain. It describes the general theory of inbound supply chain logistics operations and dives into vendor managed inventory model and how this model can be utilized in a company where the suppliers are located far, lead times are long and demand is uneven.
Vendor managed inventory model is designed to streamline the flow of goods within the supply chain. It is built on supply chain relationships to quickly replenish inventory on the basis of joint planning or actual sales experience. Basic idea is to remove the order-delivery process between the supplier and the customer. Supplier takes the responsibility to maintain inventory level directly to customer’s inventory. Therefore it requires extensive co-operation and information sharing between supply chain partners.
In this thesis it was not possible to utilize vendor managed inventory model in the company as such due to long lead times, unstable demand and IT-challenges. But it was used as a basis when creating its own Fiskars vendor managed inventory model. The research included defining the requirements, creating the new process and agreeing on the follow up system for the new model. It also included a pilot where the new Fiskars vendor managed inventory model was tested with two selected suppliers.
The Fiskars vendor managed inventory model pilot showed clear improvement in the inbound supply chain metrics. Supplier performance figures had clearly improved. Pilot also showed challenges which need to be taken into consideration when actual Fiskars vendor managed inventory implementation will take place.
Vendor managed inventory model is designed to streamline the flow of goods within the supply chain. It is built on supply chain relationships to quickly replenish inventory on the basis of joint planning or actual sales experience. Basic idea is to remove the order-delivery process between the supplier and the customer. Supplier takes the responsibility to maintain inventory level directly to customer’s inventory. Therefore it requires extensive co-operation and information sharing between supply chain partners.
In this thesis it was not possible to utilize vendor managed inventory model in the company as such due to long lead times, unstable demand and IT-challenges. But it was used as a basis when creating its own Fiskars vendor managed inventory model. The research included defining the requirements, creating the new process and agreeing on the follow up system for the new model. It also included a pilot where the new Fiskars vendor managed inventory model was tested with two selected suppliers.
The Fiskars vendor managed inventory model pilot showed clear improvement in the inbound supply chain metrics. Supplier performance figures had clearly improved. Pilot also showed challenges which need to be taken into consideration when actual Fiskars vendor managed inventory implementation will take place.