Vendor-managed Inventory in a Global Maritime Supply Chain - The Case of a Brazilian Pulp Producer

In order to transport goods, global trade lanes rely on shipping companies and operators and as producers increase their control in downstream logistics, this could change. This article examines how the flow of pulp from Brazil to main markets in Europe has evolved, and how the roles of producers, ship operators and distributors in the supply chain have evolved. Some disruptive changes in the structure and operations of the concerned supply chain using an in-depth case study of a pulp-producer are presented. The company used in the case study signed a long-term contract with a shipbuilder and operator company to transport its total export volume of wood pulp. The pulp producer's dedicated fleet enables a move from fluctuating, unreliable pulp shipments towards pre-scheduled, accurate deliveries to destinations within close proximity of the pulp customers' sites. The pulp producer has also agreed with its key overseas customers that vendor-managed inventories (VMIs) will be implemented on a global scale to reduce inventories across the supply chain and improve customer service. VMI is mainly applicable in local contexts and the case study reported could serve as a precedence of novel solutions for supply chains. There are only few cases that document VMI implementation on a global scale, especially with regard to maritime shipping.

Language

  • English

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Filing Info

  • Accession Number: 01529572
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 23 2014 4:54PM