Emerald Article: A standard agreement for vendor managed inventory Francesco Zammori, Marcello Braglia, Marco Frosolini
To cite this document: Francesco Zammori, Marcello Braglia, Marco Frosolini, (2009),"A standard agreement for vendor managed inventory", Strategic Outsourcing: An International Journal, Vol. 2 Iss: 2 pp. 165 - 186 Permanent link to this document:
Downloaded on: 11-04-2012
References: This document contains references to 44 other documents To copy this document: email@example.com
This document has been downloaded 1434 times.
Access to this document was granted through an Emerald subscription provided by COLLEGE OF PROFESSIONAL AND CONTINUING EDU LIBRARIES
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Additional help for authors is available for Emerald subscribers. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com
With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.
*Related content and download information correct at time of download.
The current issue and full text archive of this journal is available at www.emeraldinsight.com/1753-8297.htm
A standard agreement for vendor
Francesco Zammori, Marcello Braglia and Marco Frosolini
Dipartimento di Ingegneria Meccanica, Universita di Pisa,
Nucleare e della Produzione, Pisa, Italy
Purpose – The purpose of this paper is to define the standard structure of a vendor managed inventory (VMI) agreement, which can be used as a guideline for the early definition of the agreement. Design/methodology/approach – Starting from an industrial application of relevance, the information flow and the technical details, which are to be defined before the operation startup, are identified and discussed. These data are used as the key points for the definition of the basic frame of the agreement. A particular emphasis is given to the ‘‘Technical Specification’’ and the ‘‘Service Level Agreement’’ sections.
Findings – It is shown that a VMI agreement should be arranged into parts dealing with the generic and legal sides of the agreement, whereas the technical aspects and the relation-specific topics should be addressed in the annexes. This increases the flexibility of the agreement in that, as the VMI relationship evolves over time, changes will affect only the annexes leaving the main body of the agreement unaltered.
Practical implications – The proposed agreement has a flexible structure and can be easily adopted by the personnel involved to correctly define and implement VMI in several industrial fields. Originality/value – By approaching VMI from a practical point of view, this paper identifies the main issues that must be covered in the agreement to fit the needs of both parties and to assure benefits on both sides.
Keywords Agreements, Service levels, Supply chain management, Vendors, Inventory management Paper type Case study
In recent years, the supply chain management has proven that companies can achieve a sustainable competitive advantage whether they compete as part of the supply chain and not as single entities...