Beyond VMI - Schenker Leads in Replenishment Research

Collaboration with WHU Business School. Researching Future Trends in Vendor Managed Inventory Fulfillment Models

News Item Entered: Tuesday, June 12, 2007

(Essen, 12 June 2007) Schenker, one of the world's leading providers of integrated logistics and supply chain management services, has collaborated with WHU - Otto Beisheim School of Management in Vallendar, Germany to research new trends in vendor managed inventory (VMI) fulfilment practices. The research concluded that 3PLs have a greater role to play in adding value in replenishment services such as VMI, by enabling more collaboration among suppliers and consolidating operations across multiple buying organizations.

WHU - Otto Beisheim School of Management is a well renowned international business school specializing in the field of supply chain management via its Kuehne-Centre for Logistics Management.

Professor Juergen Weber of WHU said “The research confirmed that many VMI models still do not create value in the total system but rather move costs from buyer to supplier. With new advanced forms of collaboration with all parties involved and active controlling of their client's network inventory, 3PLs can provide solutions that lead to overall system costs reduction.”

WHU analyzed a variety of replenishment models, including the extensive range of customer programs operated by Schenker. They identified future scenarios for advanced replenishment models in the hi-tech sector, where 3PLs are taking active roles in managing their client's supply networks.
More details of WHU’s research in collaboration with Schenker can be found at www.schenker.com or www.whu.edu/klm.

Alan Joseph, Vice President of Hi-Tech Logistics & Supply Chain Management at Schenker said, “The collaboration with WHU is demonstration of Schenker’s innovation and vision to anticipate industry needs and develop solutions of the future. Schenker is a market leader in the provision of vendor managed inventory programs, supporting the supply chains of many of the world’s best known hi-tech and telecommunications companies.”