Key Success Factors of Vendor-Managed Inventory Implementation in Taiwan's Manufacturing Industry

Abstract

Under increasing pressure from competitors and consumers, vendor-managed inventory (VMI), which is believed to be conducive to reducing inventory costs and improving distribution and sales, has been a popular system particularly in the retail industry. This present study, by adopting the modified Delphi method, attempts to identify key success factors of VMI implementation in Taiwan manufacturing industry and examine impact of the identified factors. Through three rounds of expert questionnaires, it is found that excellent project management, organizational fit, information sharing, trialability, and top management commitment are the five most important factors in terms of VMI implementation in Taiwan manufacturing industry. Employee training, a good project team, exercise of power, and relative advantages are of secondary importance to Taiwan manufacturing industry. Finally, it is hoped that these identified factors may serve as a guide for manufacturing companies in implementing VMI more effectively and efficiently.