Collaboration and Vendor-Managed Inventory in the Public Sec

This case was a finalist for the CSCMP 2013 Supply Chain Innovation Award.The Pennsylvania Liquor Control Board (PLCB) intended to reduce its working capital by implementing a vendor-managed inventory model termed Bailment. It would legally enable the PLCB to maintain physical possession of merchandise in its warehouses, even though the goods are owned by its suppliers. Thus, the PLCB delayed ownership of merchandise in its warehouses until the goods leave its warehouses to fulfill store orders. PLCB’s unique customized solution brought 28 vendors into one web-based portal that supports collaborative planning based on shared forecasts and historic sales information. Furthermore, the merchandizing system was customized to enable a hybrid inventory management model that allowed the PLCB to store vendor-owned merchandise and PLCB-owned stock in the same physical warehouse location without changing the warehouse management system.Note: Case study fees are nonrefundable.
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