NICMAR

VENDOR MANAGED INVENTORY IN INDIAN

CONSTRUCTION INDUSTRY

Submitted By
Akshay Malhotra 241100
Harsha Vardhan Meduri 241107
Indranil Mondal 241114
PGP ACM 24th Batch
(2010- 2012)

Under the Guidance of

Dr. A.K.Garg

A Project Thesis submitted in partial fulfillment of the Academic requirements of the Post
Graduate Programme in Advanced Construction Management
(PGP ACM)

NATIONAL INSTITUTE OF CONSTRUCTION

MANAGEMENT AND RESEARCH
PUNE CAMPUS

DECLARATION

We declare that the project thesis entitled VENDOR MANAGED INVENTORY IN

CONSTRUCTION INDUSTRY IN INDIA is the bonafide work carried out by us, under
the guidance of Dr.A.K.Garg, further we declare that this has not been previously formed
the basis of award of any degree, diploma, associate-ship or other similar degrees or
diplomas, and has not been submitted anywhere else.

Date:

Akshay Malhotra 241100

Harsha Vardhan Meduri 241107
Indranil Mondal 241114
PGP ACM 24th Batch (2010-2012)NICMAR Pune

CERTIFICATE

This is to certify that the project thesis entitled VENDOR MANAGED INVENTORY IN
CONSTRUCTION INDUSTRY IN INDIA is the bonafide work of Mr.Akshay Malhotra,
Mr.Harsha Vardhan Meduri, Mr.Indranil Mondal in partial fulfillment of the academic
requirements for the award of Post Graduate Programme in Advanced Construction
Management (PGP ACM). This work is carried out by them, under my guidance and
supervision.

(HOD: ACM, NICMAR, Pune)

Guide

Prof A.D.Gosavi

Dr. A.K.Garg

Date:
Place:

ACKNOWLEDGEMENTS

We profoundly express our gratitude to our guide Dr.A.K.GARG, Research Head,

NICMAR, Pune for his valuable guidance, encouragement, support and timely advice all
throughout the progress of this study.
We wish to express our profound thanks to Dr. Anil Agarwal, Dean, PGP, NICMAR,
Pune under whose able support and guidance we were able to do this project.
We express our sincere and heartfelt thanks to Dr. M. G. Korgaonkar, Director General,
NICMAR, Pune for giving us an opportunity to undertake this research subject for study.
We would also like to thank our, Sr. Librarian, who gave us important inputs for our
research work and supported us throughout the progress of our study.
Lastly, we would like to thank our families and friends, and all those involved, directly and
indirectly, in the successful completion or our research project.

Akshay Malhotra 241100

Harsha Vardhan M 241107
Indranil Mondal 241114

ABSTRACT

Successful project management involves efficient management of project resources such

as materials and labors. Material management is focusing on material handling and
delivery. This study looks into vendor-managed inventory as a potential solution for
reducing inventory problems at site. There is potential of successful application of VMI in
India but it will depend on the response of the industrial players. Vendor-managed
Inventory is an inventory control system that shifts the responsibility of taking care
inventory at site to contractors. The first signs of VMI were perceptible in manufacturer
that used to reduce the cost of holding inventory. The objectives of this project are to
study the inventory and its problem in undertaken construction project and analyzing the
potential of VMI in local construction industry. Other objective is to investigate the extent
of expected barriers and benefits from the viewpoint of construction personnel. Based on
the survey, there are two major problem faced by construction personnel including
inaccurate measurement that lead to wastage problem and site inventory records
(spreadsheet application) which tends to be flawed due to manual process. The survey
shows that there are few more steps for local construction industry to reach the concept
of VMI.
Finally the thesis reveals that lack of cooperative culture and increased repeat business
with the key suppliers or contractors has identified as major expected barrier and benefit
from viewpoint of construction personnel.