In 2009 and 2008, the United States experienced the biggest economic recession since the Great Depressive disorders of the Thirties. Lack of employment increased and market requirement dropped leaving organizations and producers struggling to downsize, and many little retail store companies was missing the volume to generate enough sales and income to endure. These little retail store companies could have utilized a concept of provide sequence control called consignment vendor-managed stock (VMI) as a tool to aid in success. Numerous little wood metres are sustained the current real estate crisis by exercising a form of consignment VMI to increase stock changes and enhance income. Providers in other sectors can advantage from this system just as these building materials retailers have. Providers can take advantage of consignment VMI because it creates connections within the provide sequence, it can enhance revenue, and it provides retailers with the capability to relieve stock pressure while still keeping the capability to fulfill customer requirement.
Supply sequence connections are damaging to the lifestyle of a retail store company, especially during an financial slowdown. VMI applications can accomplish and grow these connections, "companies that develop mutually beneficial capabilities with their suppliers/customers - via a VMI system - and make use of those capabilities earn a number of important company advantages (Duchessi & Chengalur-Smith, 2008, p. 123)". These advantages can consist of a recommended position with owner, and in come back, results in better costs, support, and information discussing.