1. What was the catalyst for NIBCO to develop a VMI program, and why was it able to respond?
2. Describe what types of transactions are involved in NIBCO’s VMI program.
3. What types of benefits have been attributed to the VMI initiative—for both NIBCO and NIBCO’s customers?
4. What new initiatives would you recommend that NIBCO pursue next to continue to take advantage of its current IT capabilities?

Headquartered in Elkhart, Indiana, NIBCO is a worldwide provider of flow control products (valves, fittings, hangers, supports, seismic bracing, and struts) with over $400 million in revenues and a 100-year history. As a privately held firm, by 2003 NIBCO had about 3,000 employees (referred to internally as associates) and manufactured more than 20,000 different stock-keeping units (SKUs) in manufacturing facilities primarily in the United States, but also in Mexico and Central Europe.