This week, the business development manager for International Logistics Services (your project management case study) has returned from a meeting with Walmart. Walmart and Proctor & Gamble successfully pioneered the use of vendor managed inventory (VMI), which is cited in the article, New Models for a Single-Manufacturer Multi-Retailer Supply Chain Under Vendor Managed Inventory Program (Links to an external site.). The VMI concept enables the vendor or manufacturer to decide on the timing and quantity of restocking store shelves up to a certain maximum using data from the retailer. During the meeting, Walmart suggested that International Logistics Services might implement a VMI on their behalf. This would mean that International Logistics Services would need to develop a system and a process to obtain the data from Walmart and assume responsibility to order product from the various vendors and ship to Walmart ensuring no stock-outs without exceeding the maximum. The business development manager suggests that this requirement be added to the scope of the Logistics Services Improvement project.
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