A growing number of international companies operate in a standard business systems environment. This suggests that standard business system solutions, e.g. from SAP R/3, might be adopted rather than introducing new problem specific systems solutions for new business requirements. This could be a cost efficient alternative in a situation when supply chain sophistication and integration demands from customers are increasing. In the Nordic countries vendor managed inventory (VMI) is an example of a new way of doing business that can give pioneers a competitive edge. The vendor in this case is the first supplier to go into a full-scale VMI relationship with the wholesaler – and has, through this, substantially reduced delivery costs to the retail trade. The case VMI implementation demonstrates that it is possible to arrive at a simple but efficient solution in a standard systems environment. The case shows how VMI can be implemented in a SAP R/3 environment based on the EDIFACT inventory report.
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