Vendor Managed Inventory

For most businesses, inventory management is expressly linked to supplier management. After reading the article Report points to Walmart upping stakes for supplier shipping requirements, consider the following. Walmart is often regarded as the leader in vendor managed inventory (VMI), requiring its suppliers to meet Walmart's standards in order to do business with them. If you are interested, read Walmart's supplier requirements from their website. For additional information on VMI, see Chapter 15 in the textbook.

Post your insights on the following questions with support from the textbook, Bible, and external peer-reviewed research:

• From an ethical perspective, should Walmart have the power to force their standards on their suppliers? Why or why not?
• What business need(s) is Walmart trying to fulfill with these policies?
• What are the advantages and disadvantages to Walmart of setting such demanding requirements?
• What are the advantages and disadvantages to existing suppliers to meet such demanding requirements?
• What are the advantages and disadvantages to potential new suppliers to meet such demanding requirements?

Article links

https://www.scmr.com/article/report_points_to_walmart_upping_stakes_for_supplier_shipping_requirements

https://corporate.walmart.com/suppliers