To let your supplier perform the supply planning - Setup

This topic describes how to set the system up if your supplier performs the supply planning for you in a vendor managed inventory (VMI) situation.

Step 1. Implemented software components

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

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

In the Warehouses (whwmd2500m000) session, define the warehouse where you receive the item.

Set the following field to the appropriate value:

  • Include in Enterprise Planning
    To have the planning process take the inventory in this warehouse into account, select the Include in Enterprise Planning check box.

Note: If your supplier also manages the inbound and outbound operations in this warehouse, you must clear the Inventory Management check box.

Step 3. Business partner

In the Business Partners (tccom4500m000) session, define the supplier.

To specify the relevant data for buy-from business partners, click Buy-from Business Partner to start the Buy-from Business Partners (tccom4120s000) session.

Step 4. Terms and conditions agreement

In the Terms and Conditions (tctrm1100m000) session, define a the terms and conditions agreement of type Purchase. 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. Purchase contract

In the Purchase Contracts (tdpur3100m000) session, define a purchase contract between you and your supplier.

Set the following fields to the appropriate values:

Step 6. 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 Confirmed Supply
    To specify whether you accept all confirmed-supply messages without checking, use the Automatic Accept Confirmed Supply check box.
Step 7. Plan items

In the Items - Planning (cprpd1100m000) session, define the plan item. In general, the plan item's cluster segment must be left empty; the plan item is a nonclustered item.

Set the following fields to the appropriate values:

  • Default Warehouse
    Enter the warehouse you defined in step 2 in the Default Warehouse field.
  • VMI Role
    If you run the planning process, LN automatically sets the VMI Relation field to Receive Customer Forecast.
Step 8. 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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