Case Study II-1 Vendor Managed Inventory at NIBCO
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Teaching Note on Case Study II-1
Vendor-Managed Inventory at NIBCO
Objectives
The primary objective of this teaching case is to provide an example of how companies can leverage their
ERP installations to provide an extended supply chain solution that helps lock-in key business customers.
[Note: this case study about NIBCO is a follow-up study to Case Study III-
Overview
implementation at all North America sites. With a full suite (except HR) of ERP modules successfully
implemented, NIBCO became a recognized leader within its industry.
Since not all students may have read the other case study, this case study begins with a short introduction
subsequent ERP projects as well as major supply chain improvements since the initial implementation.
Additional writeups by the authors of this case study can be used by the instructor to amplify several of
the points in this short case:
Questions for Discussion
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1. What was the catalyst for NIBCO to develop a VMI program, and why was it able to respond?
2.
Four EDI
3. What types of benefits have been attributed to the VMI initiative for both NIBCO and
customers agree to purchase a given product that NIBCO makes (e.g., certain types of copper pipes) only
4. What new initiatives would you recommend that NIBCO pursue next to continue to take
advantage of its current IT capabilities?
have been relatively stable, and the company has a lot