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TTI Advanced Inventory Management Program: VMI in a Global Market
F. Barry Lawrence
published: 2006 | Case Study | Operations Management
Subject Area: Operations Management
Key Issues: Vendor Managed Inventory; Distribution Planning; Auto Replenishment; Global Distribution
Case Description: TTI, a limited line, specialty distributor of electronic components was experiencing a rapidly changing market in 1996. Supply Chain Management (SCM) and its related programs were causing a revolution in electronics distribution. Distributors were being asked to deliver more services related to inventory management. The globalization of the industry was a major issue. As large customers opened facilities around the world, TTI had to decide whether to follow or risk losing customers to suppliers with a local presence. If TTI could not serve a customer at its new locations, it risked losing the entire account. TTI provided a complete vendor managed relationship for major customers. This threat was particularly severe in the then SCM environment since customers were seeking strategic alliances with companies able to serve their needs anywhere in the world. TTI was determined to find a solution that improved customer service and at the same time stay profitable.
# Case Pages: 8
Case Number: 040019-22-4-7
Teaching Note: Yes
revised May 24/06
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