How inventory consignment programs can improve supply chain performance: a process oriented perspective
Abstract Inventory Consignment (IC) has largely been viewed as a method of shifting the ownership and cost burden of inventory from buyer to supplier to benefit the buyer. This primarily accounting based viewpoint has largely ignored process changes that can occur for both the buyer and supplier. Th...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Associação Brasileira de Engenharia de Produção (ABEPRO)
2017-09-01
|
| Series: | Production |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-65132017000100322&lng=en&tlng=en |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849686967905681408 |
|---|---|
| author | Manoj K. Malhotra Alan W. Mackelprang Jayanth Jayaram |
| author_facet | Manoj K. Malhotra Alan W. Mackelprang Jayanth Jayaram |
| author_sort | Manoj K. Malhotra |
| collection | DOAJ |
| description | Abstract Inventory Consignment (IC) has largely been viewed as a method of shifting the ownership and cost burden of inventory from buyer to supplier to benefit the buyer. This primarily accounting based viewpoint has largely ignored process changes that can occur for both the buyer and supplier. This study addresses this gap in the extant literature by examining IC from a process perspective by specifically addressing: (1) the implementation issues in an IC program for both buyers and suppliers and (2) the financial and operational benefits from IC for both buyers and suppliers. Using the case study methodology, we examined three firms that had varying degrees of involvement and roles in IC programs. Based on our detailed work with these three firms and their supply chain linkages, we offer a series of propositions to demonstrate that IC is not just an accounting issue, but also a management practice that requires a series of process changes in order to be successful. These process changes in turn provide operational benefits for both buyers and suppliers via the mechanism of increased demand visibility to suppliers. Through this approach, this study makes a contribution beyond what has been examined in the prior literature which has mostly dealt with IC as an accounting based inventory management issue. |
| format | Article |
| id | doaj-art-01bdcf78b1bc4e8d981f7b08122839cc |
| institution | DOAJ |
| issn | 1980-5411 |
| language | English |
| publishDate | 2017-09-01 |
| publisher | Associação Brasileira de Engenharia de Produção (ABEPRO) |
| record_format | Article |
| series | Production |
| spelling | doaj-art-01bdcf78b1bc4e8d981f7b08122839cc2025-08-20T03:22:30ZengAssociação Brasileira de Engenharia de Produção (ABEPRO)Production1980-54112017-09-0127010.1590/0103-6513.006417S0103-65132017000100322How inventory consignment programs can improve supply chain performance: a process oriented perspectiveManoj K. MalhotraAlan W. MackelprangJayanth JayaramAbstract Inventory Consignment (IC) has largely been viewed as a method of shifting the ownership and cost burden of inventory from buyer to supplier to benefit the buyer. This primarily accounting based viewpoint has largely ignored process changes that can occur for both the buyer and supplier. This study addresses this gap in the extant literature by examining IC from a process perspective by specifically addressing: (1) the implementation issues in an IC program for both buyers and suppliers and (2) the financial and operational benefits from IC for both buyers and suppliers. Using the case study methodology, we examined three firms that had varying degrees of involvement and roles in IC programs. Based on our detailed work with these three firms and their supply chain linkages, we offer a series of propositions to demonstrate that IC is not just an accounting issue, but also a management practice that requires a series of process changes in order to be successful. These process changes in turn provide operational benefits for both buyers and suppliers via the mechanism of increased demand visibility to suppliers. Through this approach, this study makes a contribution beyond what has been examined in the prior literature which has mostly dealt with IC as an accounting based inventory management issue.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-65132017000100322&lng=en&tlng=enSupply chain managementInventory managementSupplier managementCase studiesQualitative data analysis |
| spellingShingle | Manoj K. Malhotra Alan W. Mackelprang Jayanth Jayaram How inventory consignment programs can improve supply chain performance: a process oriented perspective Production Supply chain management Inventory management Supplier management Case studies Qualitative data analysis |
| title | How inventory consignment programs can improve supply chain performance: a process oriented perspective |
| title_full | How inventory consignment programs can improve supply chain performance: a process oriented perspective |
| title_fullStr | How inventory consignment programs can improve supply chain performance: a process oriented perspective |
| title_full_unstemmed | How inventory consignment programs can improve supply chain performance: a process oriented perspective |
| title_short | How inventory consignment programs can improve supply chain performance: a process oriented perspective |
| title_sort | how inventory consignment programs can improve supply chain performance a process oriented perspective |
| topic | Supply chain management Inventory management Supplier management Case studies Qualitative data analysis |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-65132017000100322&lng=en&tlng=en |
| work_keys_str_mv | AT manojkmalhotra howinventoryconsignmentprogramscanimprovesupplychainperformanceaprocessorientedperspective AT alanwmackelprang howinventoryconsignmentprogramscanimprovesupplychainperformanceaprocessorientedperspective AT jayanthjayaram howinventoryconsignmentprogramscanimprovesupplychainperformanceaprocessorientedperspective |