Supply-Chain Management at W'Up Bottlery (B)

  • Reference: DARDEN-OM-1352-E

  • Number of pages: 2

  • Publication Date: Jul 30, 2008

  • Source: Darden University of Virginia (USA)

  • Type of Document: Case

  • Industry Setting: Food/Beverage

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Description

After spending a day in a meeting room in August 2005, pondering how to improve supply-chain performance, Rajat Mehra’s team hit upon an idea that might enable dramatic reduction in the cost of stock-outs and excess inventory, through implementation of vendor-managed-inventory (VMI). This idea involved moving away from the current situation in which independent distributors placed orders for replenishment to the W’Up plant, which in turn shipped the items ordered. In the proposed system, distributors would instead report their inventory levels directly to the W’Up supply-chain management group. Managers in this group would then decide how much stock to send out to each distributor. This plan mirrored the concept of vendor-managed inventory (VMI) that was gaining popularity in the West. A novel idea for implementation allowed the company to circumvent the scarcity of IT infrastructure. See also the A case (UVA-OM-1351).

Keywords

Supply Chain