Framework for characterizing the design of VMI systems

Purpose – The purpose of this study is to provide for the research community as well as for the practitioners measures that enable the evaluation, categorization and comparison of vendor managed inventory (VMI) systems. Design/methodology/approach – In this paper, a framework is developed for characterizing the design of VMI systems based on a review of prior research and an empirical investigation of industry‐to‐industry VMI relationships in Sweden. Findings – The proposed framework incorporates the main characteristics of VMI systems and serves as a tool for profiling VMI system designs and for facilitating the comparison and analysis of different VMI system configurations. Research limitations/implications – The Swedish industrial context in which the framework was tested should be taken into consideration when generalizing upon the findings. Practical implications – VMI systems come in various shapes and setups, as a result of which the challenges related to their operation and management may differ significantly. This study addresses the issue by providing practitioners with a tool that helps them in the design and management of VMI systems. Originality/value – While categorizations and measures for the VMI systems exist in prior research, this study contributes by synthesizing the existing measures and testing them in empirical setting. The study contributes particularly to the research on VMI systems but also more broadly to the supply chain management research.