Some firms have adopted a new approach to order fulfillment, i.e., automatic inventory replenishment. With automatic replenishment programs (ARPs), sellers replenish or restock inventory based upon actual product usage and stock level information provided by buyers. This paper reports on a recent survey of logistics professionals regarding .ARP involvement. In addition to providing a profile of current usage, the research also examines the relationship between investment in automatic replenishment related resources and .ARP performance. Firms making a greater commitment to ARP (in terms of resource allocation) reported enhanced day-to-day operational performance and greater success in the overall performance of the trading relationship.
Ellinger, Alexander E., Daugherty, Patricia J. & Autry, Chad W. (1998). Automatic replenishment: the relationship between resource commitment and program performance. Journal of Transportation Management, 10(2), 1-16. doi: 10.22237/jotm/901929720