Vendor Managed Inventory practices in Indian SMEs: select differences in manufacturing and service sector

Abstract

Organisations constantly strive to enhance its operational and financial performance through collaborative Supply Chain Management techniques. One of the collaboration techniques, Vendor Managed Inventory (VMI), is slowly getting rooted in Indian organisations. This paper focuses on the select differences pertaining to VMI issues in Indian the manufacturing and service sector of Small and Medium Enterprises (SMEs). Significant differences were found among these sectors. The results of the survey provide insights on the VMI issues in Indian SMEs. Enterprises that have adopted and those that are planning to adopt VMI could use the result for developing a framework within its boundary.

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