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Report
The Truth About VMI: Revelations and Recommendations

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.

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