Impacts of vendor managed inventory on business processes - Demonstration and process reference modeling

In order to improve their inventory management a growing number of SME's plan to implement Vendor Managed Inventory (VMI) with supply chain partners. This means, they have to coordinate their business processes with their partners. The impact of VMI on business processes is frequently underestimated and hence the implementation of VMI fails. However, the use of process reference models for implementing VMI can lead to successful implementation as they offer best practice processes, which support the adoption of processes to a supply chain concept. An example for that is LogWIN-P, which has a high level of detail and is easily adaptable to processes of companies of different sizes and industries. The LogWIN-P model was extended to provide support for VMI implementation. This model thus describes the VMI process and shows the impacts of VMI on company's business processes and points out the required processmodifications.