1 AIT Asian Institute of Technology

Supplier Managed Inventory (SMI) and Supplier Owned Inventory (SOI) programs at Unilever Thai Holdings Company

AuthorKomsan Ruengpradub
Call NumberAIT RSPR no.SM-04-35
Subject(s)Business logistics
Inventory control

NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration.School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-04-35
AbstractSupplier management has emerged as potential steps towards successfully integrating activities and infonnation across multiples firms in Thailand. Implementing supplier development program requires significantly larger efforts not only in the operational dynamics of order management, warehousing and transportation, but it also requires the company to continuously search for opportunities to create strategic initiatives with business pa1tners that enable the co-evolution of radically new methods to effectively be implemented. This paper examines a classification of four contract suppliers of SMS, nonSMS, SMI and SOI who supply materials to Unilever Thai Company. Each individual supplier has been managed by different approaches depending upon a degree of serviceability and their pa1tnerships. In depth interview were conducted in both sides of Unilever Thai and key selected suppliers. Logistic managers, warehouse managers, production managers, sale managers and support function managers (supplier development and quality assurance) were the people usually interviewed, but sometimes also top managements. Results show that a successful implementation of supplier management and development program has been mainly driven by a good cooperation and support of suppliers who are Unilever Thai 's business partnership, a robustness of the information and communications transfer between Unilever Thai and suppliers, effective supplier strategic development, management commitment and people resource and work force anangement. Effective development program of SMS to SMI implemented by Unilever Thai Company enable network supply to mobilize channel competencies and resources to significantly reduce inventories and lower costs while greatly improving the entire channel's ability for competitive advantages. Moreover, key success factors in developing potential suppliers for SMI program and supplier performance evaluation in terms of SSQR assessment are also described in this study. Also, the research paper proposes some recommendations in continuous improvement of cutTent supplier management of Unilever Thai Company
Year2004
Corresponding Series Added EntryAsian Institute of Technology.|tResearch studies project report ; no. SM-04-35
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Do Ba Khang;
Examination Committee(s)Singha Chiamsiri ;Donyaprueth Krairit;
Scholarship Donor(s)Unilever Thai Holdings Company ;
DegreeResearch Studies Project Report (M. Sc.) - Asian Institute of Technology, 2004


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