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Vendor managed inventory: preparation for an implementation of a pilot project and guidance for an upcoming evaluation at Volvo Trucks in Umea
2007 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Today, collaboration between members in a supply chain is often a necessity to stay competitive among other supply chains. In order to succeed with this collaboration, information sharing is vital. One way of sharing information and making it possible for a supplier to manage the replenishment of a customer’s inventory is by utilizing Vendor Managed Inventory, VMI. This is a concept that has been appealed by the cab producer Volvo Trucks in Umea. The purpose with this thesis is to prepare for an implementation of a pilot project of VMI at Volvo Trucks in Umea. Another purpose of this thesis is to investigate which key performance indicators that should be included in an upcoming evaluation of the project. The implementation process were executed in an interplay between the authors’, Volvo Powertrain, Volvo Information Technology, PipeChain and Volvo Trucks in Umea. Parallel to the work with the implementation process was a literature study carried out. This study made it possible for the authors’ to analyze the material found in the literature review with the actual implementation of VMI at Volvo Trucks in Umea. The method used to identify key performance indicators, when evaluating VMI, began with a literature review. Interviews were then held with two case companies, Volvo Powertrain and Ericsson. Finally, findings from the interviews were compared and analyzed with theories found in the literature review. Conclusions of the thesis indicate that an implementation of VMI takes time. Experiences from the implementation process also imply that substantial resources must be available before and during implementing a resource demanding pilot project, covered in this thesis. Key performance indicators that especially should be inspected in an upcoming evaluation are: administration cost, inventory cost and the size of the tied-up capital. Volvo Trucks in Umea also recommends to carefully examining the work pattern for involved material controllers during the pilot project. Finally, the thesis states that the measurement of suppliers’ customer service should be expressed in terms of service level rather as in delivery precision and delivery reliability.

Place, publisher, year, edition, pages
Keyword [en]
Social Behaviour Law, VMI, vendor managed inventory, leverantörsstyrda lager, SCM, supply chain management, logistics, logistik
Keyword [sv]
Samhälls-, beteendevetenskap, juridik
URN: urn:nbn:se:ltu:diva-52277ISRN: LTU-EX--07/009--SELocal ID: 96656cea-f24a-4ba1-b721-c7e89b2de975OAI: diva2:1025647
Subject / course
Student thesis, at least 30 credits
Educational program
Industrial and Management Engineering, master's level
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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