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The relationship between vendor managed inventory and operational performance

The relationship between vendor managed inventory and operational performance For the supply chain to be responsive in the age of globalization, the firm needs to adopt strategies to enable them to meet the changing market needs. Thus, it is essential to adopt automatic replenishment programmes such as vendor-managed inventory (VMI). This study sought to examine the relationship between VMI and operational performance (OP) and the moderation roles of leadership and digitization in the mining sector.Design/methodology/approachA quantitative approach was used, including primary data collected from industry players in the mining sector in Ghana. A total of 97 industry players were included in the study. Data gathered was analysed using SPSS and LISREL (8.5).FindingsThe results indicate that VMI significantly affects OP. However, both digitization and leadership failed to moderate the relationship between VMI and OP.Practical implicationsThe study offers mining companies an understanding of VMI applications in their industry. The knowledge will stimulate and improve inventory management practices in the mining industry.Originality/valueThis study is among the first few attempts to understand VMI in the mining industry, especially in the Sub-Saharan Africa context. It presents a detailed understanding of VMI and opportunities for future research. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Modern Supply Chain Research and Applications Emerald Publishing

The relationship between vendor managed inventory and operational performance

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The relationship between vendor managed inventory and operational performance

Owusu Kwateng, Kwame; Fokuoh, Benjamin; Tetteh, Francis Kamewor
Modern Supply Chain Research and Applications , Volume 4 (3): 21 – Nov 4, 2022

Abstract

For the supply chain to be responsive in the age of globalization, the firm needs to adopt strategies to enable them to meet the changing market needs. Thus, it is essential to adopt automatic replenishment programmes such as vendor-managed inventory (VMI). This study sought to examine the relationship between VMI and operational performance (OP) and the moderation roles of leadership and digitization in the mining sector.Design/methodology/approachA quantitative approach was used, including primary data collected from industry players in the mining sector in Ghana. A total of 97 industry players were included in the study. Data gathered was analysed using SPSS and LISREL (8.5).FindingsThe results indicate that VMI significantly affects OP. However, both digitization and leadership failed to moderate the relationship between VMI and OP.Practical implicationsThe study offers mining companies an understanding of VMI applications in their industry. The knowledge will stimulate and improve inventory management practices in the mining industry.Originality/valueThis study is among the first few attempts to understand VMI in the mining industry, especially in the Sub-Saharan Africa context. It presents a detailed understanding of VMI and opportunities for future research.

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Publisher
Emerald Publishing
Copyright
© Kwame Owusu Kwateng, Benjamin Fokuoh and Francis Kamewor Tetteh
ISSN
2631-3871
DOI
10.1108/mscra-03-2022-0009
Publisher site
See Article on Publisher Site

Abstract

For the supply chain to be responsive in the age of globalization, the firm needs to adopt strategies to enable them to meet the changing market needs. Thus, it is essential to adopt automatic replenishment programmes such as vendor-managed inventory (VMI). This study sought to examine the relationship between VMI and operational performance (OP) and the moderation roles of leadership and digitization in the mining sector.Design/methodology/approachA quantitative approach was used, including primary data collected from industry players in the mining sector in Ghana. A total of 97 industry players were included in the study. Data gathered was analysed using SPSS and LISREL (8.5).FindingsThe results indicate that VMI significantly affects OP. However, both digitization and leadership failed to moderate the relationship between VMI and OP.Practical implicationsThe study offers mining companies an understanding of VMI applications in their industry. The knowledge will stimulate and improve inventory management practices in the mining industry.Originality/valueThis study is among the first few attempts to understand VMI in the mining industry, especially in the Sub-Saharan Africa context. It presents a detailed understanding of VMI and opportunities for future research.

Journal

Modern Supply Chain Research and Applications – Emerald Publishing

Published: Nov 4, 2022

Keywords: Vendor managed inventory (VMI); Mining industry; Digitization; Leadership; Operational performance; Structural equation modelling

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