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The Truth About VMI

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 a wrenching 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 and several other partners, launched an ambitious research project – a survey of supply chain practitioners at 60 firms, interviews of 14 firms, and the formation of the VMI working group (see sidebar list of working group members), which met in a series of intensive interactive sessions.

Dynamics of the Retailer-Supplier Relationship

In both retail and consumer-product-goods sectors, the gap between winners and losers widens every day. What is it about the winners that makes them more and more successful, extending their lead everyquarter? What are the dynamics driving this “battlefront” between retailersand their suppliers in the struggle for projects, profits, customers and market share? What can trading partners do to win a stronger power position in the supply chain? To answer these questions, ChainLink Research surveyed more than 130 leading retailers and manufacturers. Our unique approach explores the perspective from both sides of the trading-partner link to uncover differences in perception and reveal the myths and the realities.

The Future Logistics Enterprise

This paper will articulate and validate the Future Logistics Enterprise (FLE) vision and objectives for readers such as industry suppliers and partners, members of Congress, members of other governmentagencies, and fellow members of the Department of Defense who needto understand the challenges, and align with the FLE goals.

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