Panasonic Panasonic makes digital cameras, plasma televisions, and other
consumer electronics. After missing revenue goals, the company decided to adopt a
vendor-managed inventory solution. Inventory distribution then came in line with consumption,
and availability of products to customers jumped from 70 percent to 95 percent. The
average weeks that product supply sat in Panasonic’s channels went from 25 weeks to just
5 weeks within a year, and unit sales of the targeted plasma television
rose from 20,000 to approximately 100,000. Best Buy, the initial
retailer covered by the vendor-managed inventory model, has since
elevated Panasonic from a Tier 3 Supplier to a Tier 1 “Go-To” Brand for
plasma televisions.