Nestle Thailand's Best Practice, a Support Idea on Support Best Practice VMI: An Enable of Conceptual Collaboration

Abstract

This paper purposed to present collaboration support a best practice through the implementation for Vendor Manage Inventory (VMI). The desire to get rid of the non-valueadded costs associated with trading partners’ relationship and explore basic issues of Nestlé’s Thailand related to her best practice mission as a case study. One of key is related to VMI implementation, including its benefits/pitfalls and higher service level. The empirical data were collected through site visit with an interview and discussion with sophomore practitioners. This studying, Nestlé’s VMI implementation explained into illustration. Findings, VMI technologies as information systems can develop collaboration among the partners. The organization was under win/win concept, increment of partners’ relationship and reduction of sales lost, bullwhip, with evolution of ordering system. Findings of this study showed all the features of VMI influenced value in service level improvement significantly. The best practice approaches were explored. This paper conclusion values for academic’s learning and practitioner’s knowledge. The scope of study only within range of VMI practiced as a single tool in best practice concept. Practical implications, this paper confirms the power of VMI - a collaboration concept is most concerned factor, especially "trust" among partner with benefits for costs and waste reduction. The paper discussed implementation challenges, identifies adoption phases and reviews VMI key success factors. Results identified the biggest challenge as not for IT experts in determining how to integrate VMI with existing partners, recapitalized or investment but customer relationship (trust) and the volume of purchasing are the main factors of the difficulty in VMI implementation to enhance the company's best practice.