| VMI customer forecast - setupModelling the VMI scenarios relevant to your
organization requires various parameter settings. If your organization buys
goods on a VMI basis, set up the customer role. If it sells goods on a VMI
basis, set up the supplier role. The most important settings for the customer
role are described below. Organizations that use warehouses of type Consignment (Not Owned) or Consignment (Owned) can continue to do so, but then the VMI functionality is
unavailable. Step 1. Implemented software componentsIn the Modules tab of
the Implemented Software Components (tccom0500m000) details session: - Select the Terms and Conditions check box.
- Clear the Ownership Internal check box.
- Clear the Use Confirmation (Purchase) check box.
- Select the Ownership External and the VMI (customer side) check boxes.
These settings are relevant to all VMI
scenarios. For more information, refer to Overview of VMI business scenarios. Step 2. ClustersIn the Clusters (tcemm1135m000) session, clear the External check box and leave the Sold-to Business Partner and Ship-to Business Partner fields empty for all scenarios, because these
settings relate to the supplier role. Step 3. WarehousesIn the Warehouses (whwmd2500m000) session, set up the VMI warehouse. In the Supply planning by customer and the Full VMI scenarios,
this is modeled as an administrative warehouse. Consider the following fields
and check boxes: Include in Enterprise Planning We recommend that you select this check
box for scenarios in which the customer performs supply planning for the VMI
warehouse, otherwise clear this check box. If the VMI warehouse is also used for
storage and inventory handling of goods belonging to business partners outside
the current VMI relationship, such as other suppliers or the customer's own
customers, clear this check box. Inventory Management Business Partner If you cleared the Inventory Management check box, in this field, select
the business partner who is to carry out inventory management. This applies to
the following scenarios: External Site In this field, select No for all
scenarios, because being the customer, the VMI warehouse belongs to your
company. -
Also, leave the corresponding business partner fields
empty: - Buy-from
- Ship-from
- Sold-to
- Ship-to
Step 4. ItemTo set up items: - In the Item Type field of the Items - General (tcibd0501m000) session, select Purchased for all
scenarios.
- In the Settings tab of
the Items - Ordering (tcibd2500m000) details session, select Planned in the Order System field for all scenarios.
-
In the General tab of the Items - Planning (cprpd1100m000) session, consider the following fields: Default Supply Source Select Production/Purchase for all
scenarios. Therefore, the value of the Actual Supply Source field changes to Purchase. Default Warehouse For all scenarios, enter the VMI warehouse specified in
the previous step. Maintain Master Plan We do not recommend to select this check box for VMI
scenarios. For other scenarios, the organization's planning requirements
determine whether to choose master planning. For more information, refer to the online Help of the Enterprise Planning package.
In the Registration Level field in the General tab of
the Item - Warehousing (whwmd4100s000) session, you can specify whether and how
the ownership of the inventory must be registered. For scenarios in which the supplier or
an LSP performs warehouse management, and therefore the VMI warehouse is an administrative warehouse in the customer's ERP system,
ownership registration on warehouse level should be sufficient. Otherwise, the required ownership registration level
depends on whether the VMI warehouse contains owned and not-owned inventory, or
inventory owned by various business partners. The scenarios in which the
customer performs warehouse management are: In the Registration Level field in the Warehouse - Item (whwmd2510m000) details session, you can specify whether and how the
ownership of the inventory must be registered for a warehouse - item
combination. See the previous list item for information about the ownership
registration levels for each scenario.
Step 5. Terms and conditions-
In the Terms and Conditions (tctrm1600m000) session, consider the following fields
relevant to all scenarios: - In the Terms and Conditions Type field, select Purchase.
For search level 1, the recommended
attribute for Search Attribute 1 is Item Group,
for Search Attribute 2 it is Warehouse.
In this way the terms and conditions apply to all items of the item group.
Other attributes used to group items for a particular set of terms and
conditions are Product Type or Product Class. For search level 2, to set up terms
and conditions for specific items, the recommended attribute for Search Attribute 1 is Item, and for Search Attribute 2 it is Warehouse. In the Priority field, set a higher priority than the one
for search level 1. For search level 3, to set up
general terms and conditions for items not covered by the terms and conditions
that match search levels 1 and 2, do not define any attributes.
Preferably select the following check boxes for all
scenarios: - Planning
- Order
- Logistics
- Invoicing
- Demand Pegging
For example, setting up planning terms and conditions might not be
necessary for scenario Supply planning by customer. The availability of these check
boxes depends on the search attributes selected for the above search
levels. - In the Payment field of the Order Terms and Conditions (tctrm1130m000) session, select Pay on Receipt for scenario Planning by supplier. Otherwise, we recommend to select Pay on Use.
- In the Planning Terms and Conditions (tctrm1135m000) session, consider the following fields:
Confirmed Supply Use Confirmed Supply For scenario Full VMI,
select this check box. For the following scenarios, this check box is
unavailable because the Send Forecast to Supplier check box is cleared: For the Planning by supplier scenario, select or clear this check
box as required in your business environment. Confirm Supply Horizon For scenario Full VMI, set
the widest possible time fence. For the following scenarios, this field is
unavailable because the Send Forecast to Supplier check box is cleared: For scenario Planning by supplier, set the time fence as required in your business
environment.
Planning Replenishment Based On For scenario Full VMI,
select Confirmed Supply. For the following scenarios, this field
is unavailable because the Send Forecast to Supplier check box is cleared: For scenario Planning by supplier, select the value required in your business
environment.
-
The Logistics Terms and Conditions (tctrm1140m000) session allows you to specify how LN updates the administrative warehouse with the inventory levels of the "real" VMI warehouse for the
following scenarios: Consider the following fields: - Method of Inventory Update
- Receiving Process
- Delivery Moments
For more information, refer to To update the administrative warehouse. - The Invoicing Terms and Conditions (tctrm1145m000) session allows you to determine how to
perform invoicing. Fill the fields as required in your business environment.
The Receive Invoice field only applies to the supplier
role.
Step 6. Purchase contractsTerms and conditions are linked to purchase contracts.
When you create a purchase contract, in the Purchase Contracts (tdpur3100m000) session: - In the Buy-from Business Partner field, insert the
supplier.
- In the Terms and Conditions ID field, link the appropriate
terms and conditions.
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