Supply chains in the construction industry are recognized for their particularities, which at the same time make them susceptible to such issues as wastes, common stock-outs, and inefficient inventory management, etc. These issues are reflected in the historically low productivity and effectiveness levels of the industry across different countries. Several strategies have been developed in order to confront these issues and improve the overall performance of supply chains in different industries. Vendor-Managed Inventory (VMI) is one of them and it is well known for its capacity to reduce costs and increase the service levels for the companies that have implemented the strategy. The VMI model is a potential solution for many of the issues that affect the construction industry, although it has been barely considered by construction supply chain managers. Under this perspective the aim of this thesis is to provide a framework for construction firms that are interested in implementing VMI as their option to establish efficient and cost effective supply chains. The VMI framework provided in this thesis details the requirements, processes, and preparation needed to successfully implement VMI utilizing inferred knowledge from several case studies and previous experience in the construction industry. The contribution of this framework for the construction industry specially focuses in identify and evaluate the appropriateness of VMI for construction firm’s cases. The evaluation of the companies’ readiness for a potential VMI deployment is the main core of the framework and provides a great tool for the supply chain practitioners to make better decisions whether VMI is the precise solution for their supply chains or not.
Supply chains in the construction industry are recognized for their particularities, which at the same time make them susceptible to such issues as wastes, common stock-outs, and inefficient inventory management, etc. These issues are reflected in the historically low productivity and effectiveness levels of the industry across different countries. Several strategies have been developed in order to confront these issues and improve the overall performance of supply chains in different industries. Vendor-Managed Inventory (VMI) is one of them and it is well known for its capacity to reduce costs and increase the service levels for the companies that have implemented the strategy. The VMI model is a potential solution for many of the issues that affect the construction industry, although it has been barely considered by construction supply chain managers. Under this perspective the aim of this thesis is to provide a framework for construction firms that are interested in implementing VMI as their option to establish efficient and cost effective supply chains. The VMI framework provided in this thesis details the requirements, processes, and preparation needed to successfully implement VMI utilizing inferred knowledge from several case studies and previous experience in the construction industry. The contribution of this framework for the construction industry specially focuses in identify and evaluate the appropriateness of VMI for construction firm’s cases. The evaluation of the companies’ readiness for a potential VMI deployment is the main core of the framework and provides a great tool for the supply chain practitioners to make better decisions whether VMI is the precise solution for their supply chains or not.