Precondition Of VMI And Company Performance Effect From VMI Implementation

It’s a new century which is innovational and inventional,with systematic approach and collaborative living.The theory of supply chain management is just an active respondence of this world strategy.Vendor managed inventory(VMI)is one of the important solution and method of supply chain management.VMI drives continuous replenishment,it initiate a replenishment strategy base on the customer real time sales and inventory status.VMI well support customers minimise the supply shortage,improve turnover and customer satisfaction,meanwhile reduce the supplier’s inventory level and brings flexibility to production.VMI become one of the important means for enterprise to increase the efficiency of the supply chain presently.The key of successful VMI is the establishment of a revenue sharing mechanism base on the match among income,risk and cost consideration.Via this mechanism,general supply chain performance can been optimized by regulated strategic partner relationship on the basis of fair pro-benefit.Currently,in the academic area,the impact studies of VMI effect in company performance with preconditions of supply chain management are very seldom.In this study,from the basis of great deal of relevant literature reference as well as the field interviews,we propose the theoretical model and investigative hypothesises.Per SPSS statistical analysis with amount of data,this study extend a deep research on the necessity of supply chain management preconditions and the impact of VMI implementation bring to company performance.We come out important research conclusions below1)VMI implementation effectiveness depend on the 4 preconditions of supply chain management2)VMI implementation effectiveness request timeliness3)The assumption of VMI implementation brings impact to company performance,no significant impact come from stock turn and customer satisfaction4)Different resut from different industry businessFrom this empirical research,the sample size is big enough,and this study validates the preconditions of the supply chain on a completely different perspective,meanwhile it extends enlightenment to related company from the research conclusions,with significance of reference.This empirical analysis can be guidance for company management.