Vendor managed inventory in the blood supply chain in Germany

Abstract

PurposeThe purpose of this paper is to develop a generic framework for the assessment of VMI implementation. The framework is used for the analysis of multiple case studies in German hospitals to discuss the feasibility of VMI in the German blood supply chain.Design/methodology/approachThe methodology is twofold. In a first step, the literature is reviewed and a generic theoretical VMI framework is developed. In a second step, the case study methodology is applied to 13 cases to assess the feasibility of VMI in the German blood supply chain.FindingsThe paper contributes a generic framework for assessing the implementation of VMI in seven steps. The research proposed that hospitals hesitate to enter a VMI relationship for critical resources such as blood. Hospitals fear losing control over critical resources.Research limitations/implicationsThe unit of analysis is hospitals in Germany and the case studies do not target the suppliers in the supply chain. The paper contributes three propositions regarding VMI in the healthcare/blood supply chain.Practical implicationsA generic framework for assessing the applicability and feasibility of VMI is provided which supports managers with the implementation of VMI in a supply chain.Originality/valueThe paper is one of the first papers targeting inventory and supply chain management in the German blood supply chain. It provides a generic framework for the assessment of the feasibility of VMI.