Performance outcomes and success factors of industrial vending solutions

Abstract

Purpose

Industrial vending solutions are unique in that they represent a very specific form of vendor-managed inventory (VMI). The purpose of this paper is to investigate performance outcomes associated with industrial vending implementation, a topic that has been largely ignored by the academic community.

Design/methodology/approach

A survey instrument was developed from earlier work on VMI success. Structural equation modeling is used to identify relationships between three enablers (information exchange, information quality, and relationship quality), perceived vending system implementation success, and three outcomes (cost benefits, customer service benefits, and inventory benefits).

Findings

Statistical outcomes demonstrate support for the benefits arising from successful vending system implementation. This study demonstrates that industrial vending implementation success is strongly tied to the amount and quality of the information shared between the relationship partners.

Practical implications

Successful industrial vending implementation results in improved inventory control, increased levels of customer service, and tighter cost control. This study provides supply chain managers with current findings, which should aid them in evaluating their current and proposed vending solutions.

Originality/value

Although VMI has been studied in the past, little work has been conducted on industrial vending as a specific form of VMI. This is the first study to explore industrial vending from the viewpoint of VMI implementation and performance. Empirically tested study results that are grounded in transaction cost theory confirm a series of performance outcomes of industrial vending from a buyer’s perspective as well as a number of enablers for successful industrial vending implementation.

Citation

Falasca, M., Kros, J.F. and Nadler, S.S. (2016), "Performance outcomes and success factors of industrial vending solutions", International Journal of Operations & Production Management, Vol. 36 No. 10, pp. 1359-1381. https://doi.org/10.1108/IJOPM-01-2015-0034