Inventory Management Efficiency Strategy at UID Banten: A Study of Vendor Managed Inventory (VMI)
Keywords:
Vendor Managed Inventory, Inventory Management, Warehouse Efficiency, Supply Chain StrategyAbstract
Inventory management is critical to guaranteeing the efficiency and reliability of power distribution at PT PLN (Persero), notably at the Unit Induk Distribusi (UID) Banten. Challenges such as restricted storage space, installation delays owing to permit limits, and the buildup of heavy items such as medium-voltage cables have all had a substantial influence on operational performance. The purpose of this research is to investigate the feasibility of using Vendor Managed Inventory (VMI) as a strategic strategy to improve inventory efficiency at UID Banten. VMI enables suppliers to manage inventory levels based on real-time consumption data and demand projections, resulting in lower holding costs, increased stock availability, and reduced inventory buildup. Using literature review, the success of VMI implementations suggests that adopting VMI can provide substantial benefits, including streamlined warehouse operations, improved supplier collaboration, and greater responsiveness to demand fluctuations. However, several prerequisites, such as digital infrastructure readiness, data transparency, and mutual trust between stakeholders, must be met for successful VMI adoption. This study provides strategic recommendations for UID Banten to assess and prepare for VMI implementation as a means of achieving long-term inventory and distribution efficiency.
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