Executive Summary: The Truth About VMI

Revelations and Recommendations from the 2003 ESCA-ChainLink Research Study on VMI in the High Tech Supply Chain

Abstract

The high tech industry has experienced a striking shift from traditional replenishment processes to Vendor Managed Inventory (VMI) replenishment for various products during the last decade. This has been awrenching transition for many suppliers. VMI was the top issue brought up by Electronics Supply Chain Association (ESCA) members in 2002. In October 2002 ESCA, in association with ChainLink Research andseveral other partners, launched an ambitious research project–a surveyof supply chain practitioners at 60 firms, interviews of 14 firms, and the formation of the VMI working group which met in a series of intensive interactive sessions.

Executive Summary
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