Track: Logistics

Abstract

In the current scenario, due to the emerging world of e-commerce, the bar of customer expectation and satisfaction is placed at a higher position than it used to be and the foremost requirement of every customer is to get their order delivered as soon as possible. An alternative to the delivery of the order is, the customer can pick up the order at Vendor Managed Inventory (VMI) location. Vendor Managed Inventory is a set of techniques for managing the inventory and in this, the supplier mainly holds the inventory for the distributors. This paper demonstrates ways by which customers can have access to orders on the same day via VMI. We will incorporate the study of VMI in day-to-day deals between the customers and suppliers, providing information regarding various aspects such as Inventory planning, forecasting, customer service etc. Here the primary focus will be on improving VMI and providing solutions to the current problems related to VMI which would result in mutual benefits to the customers and suppliers. In the recent scenario, VMI mostly benefits the customers; however, with optimization of VMI, the supplier can achieve desired profits.