From internal control to external collaboration: Vendor Managed Inventory as a paradigm shift in procurement

In recent years, the need to adopt collaborative models within the supply chain has become increasingly evident, with the goal of improving planning and reducing inefficiencies caused by uncertain and fluctuating demand. This thesis analyzes the impact of adopting the Vendor Managed Inventory (VMI) model in supply chain management, comparing it with the traditional Material Requirements Planning (MRP) system. The objective is to assess the operational, managerial, and collaborative benefits resulting from the introduction of the VMI approach. The study examines the case of Lavazza, a company characterized by the absence of an internal warehouse and is based on a case study supported by two simulations: one in a single-supplier context and one in a multi-supplier context. Through the comparative analysis of the two models, the study evaluates inventory trends, average stock levels, and their economic implications. The results show that implementing the VMI model leads to a significant reduction in average stock levels (over 30% compared to the MRP model) and, consequently, in the working capital employed. The thesis also describes the managerial and collaborative benefits that encourage stronger cooperation between the company and its suppliers. Finally, the study highlights how adapting the VMI model to a context without an internal warehouse still represents an innovative approach to improve the efficiency and responsiveness of the supply chain.