To perform the supply planning for your customer - Setup

This topic describes how to set the system up to perform the supply planning for your customer in a vendor managed inventory (VMI) situation.

Step 1. Implemented software components

In the Implemented Software Components (tccom0500m000) details session, set the following fields:

  • Terms and Conditions
    Under Modules, select the Terms and Conditions check box.
  • Ownership External
    Under Concepts (Logistics), select the Ownership External check box.
  • VMI (supplier side)
    Under Concepts (Logistics), select the VMI (supplier side) check box. This will make the supplier side of the vendor managed inventory (VMI) functionality available.
Step 2. Cluster

In the Clusters (tcemm1135m000) session, define a cluster that represents your customer's site.

Set the following fields to the appropriate values:

  • External
    To associate this cluster with a sold-to business partner, select the External check box.
  • Sold-to Business Partner
    Enter the customer for which you perform the supply planning in the Sold-to Business Partner field.
  • Ship-to Business Partner
    If you deliver goods to multiple sites for the same customer, specify the ship-to business partner that represents the customer site where the items must be delivered.
Step 3. Warehouse

In the Warehouses (whwmd2500m000) session, define the warehouse at the customer's site.

Set the following fields to the appropriate values:

  • Include in Enterprise Planning
    To have the planning process take the inventory in this warehouse into account, under General, select the Include in Enterprise Planning check box.
  • External Site
    Under Relationships > Site, in the External Site field, select Yes.
  • Distribution Cluster
    Under Relationships > Site, in the Distribution Cluster field, enter the cluster you defined in the previous step.

Note: If you will be managing the inbound and outbound operations in this warehouse, you must also select the Inventory Management check box.

Step 4. Terms and conditions agreement (Planning)

In the Terms and Conditions (tctrm1100m000) session, define a terms and conditions agreement of type Sales. For further instructions, refer to Setting up terms and conditions.

To make the planning-related parameters in the terms and conditions group available, in the Terms and Conditions Search Level - Lines (tctrm1610m000) session, select the Planning check box.

After you set up a basic terms and conditions line, start the Terms and Conditions Line (tctrm1620m000) session, click the Planning tab, and enter a record. Set the fields to the appropriate values

Step 5. Terms and conditions agreement (Order)

In the Terms and Conditions (tctrm1100m000) session, select the terms and conditions agreement you defined in the previous step.

To make the order-related parameters in the terms and conditions group available, in the Terms and Conditions Search Level - Lines (tctrm1610m000) session, select the Order check box.

Start the Terms and Conditions Line (tctrm1620m000) session, click the Order tab, and enter a record. Set the fields to the appropriate values.

The value of the Transfer Type field determines if LN will use warehouse transfers or sales transfers to deliver the items to the customer's warehouse. In general, warehouse transfers are the most simple solution, but sales transfers offer some additional features.

If the Payment field has the value Pay on Receipt, the Transfer Type field cannot be set to Warehouse Transfer.

Step 6. Sales contract

In the Sales Contracts (tdsls3500m000) session, define a sales contract between you and your customer.

Set the following fields to the appropriate values:

Step 7. EP Parameters

In the EP Parameters (cprpd0100m000) details session, set the following fields:

  • Number of Revisions
    To specify the number of revisions of the forecast and confirmed supply that LN stores, use the Number of Revisions field.
  • Automatic Accept Forecast
    To specify whether you accept all forecast messages without checking, use the Automatic Accept Forecast check box.
Step 8. Plan items

In the Items - Planning (cprpd1100m000) session, define plan item that represents the item inventory at your customer's site. for the item you deliver to your customer. In the plan item's cluster segment, enter the cluster your defined in step 2.

Set the following fields to the appropriate values:

To build up inventory at your own site, define a corresponding plan item that is either a nonclustered item, or has a cluster that is associated with the site from where you deliver the item.

Step 9. Supplying relationships

In the Supplying Relationships (cprpd7130m000) session, define the supplying relationship from your site to your customer's site.

Note: If you use direct delivery or manual replenishment, you do not require supplying relationships.

For more information on the use of multicompany distribution orders to supply your customer, refer to To transfer multicompany distribution orders.

Step 10. configure LN for BOD publishing

If you use Business Object Documents (BOD) to exchange data between supplier and customer, you must set up the BODs. For more information, refer to Configuring LN for BOD publishing.

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