Beyond Vendor Managed Inventory: the Glaxosmithkline Case

In 1995, GlaxoSmithKline launched a project with the aim of changing the of planning and replenishment processes within GSK’s supply network. The purpose was to implement Vendor Managed (VMI) both upstream and downstream in the supply network in to co-ordinate the flows of materials and information between a of different suppliers and manufacturing and distribution plants. is one of the most widely discussed partnering initiatives for the performance of supply networks. Most authors and consider it to be an approach for managing materials and flows between one or more customers and their suppliers, a number of attendant benefits. Nevertheless, as it is traditionally , VMI can also result in missing out on a number of important to optimise the entire supply network, as it only involves -customer dyads. The present case study highlights how VMI can used to manage the entire supply network as a single entity, and insights into how this form of VMI can be used to manage: (1) flows, supporting the relationships between supply network ; (2) information systems, supporting data collection, , diffusion and processing; (3) the performance monitoring , highlighting the benefits for each supply network member as well discouraging opportunistic behaviours.