| VMI supplier 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 supplier
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.
- If Enterprise Planning must allocate inventory based on forecasted demand from the
customer, but replenishment is based on call-off, select the Demand Pegging check box.
- Clear the Ownership Internal check box.
- Select the Ownership External check box if the ownership of the
goods is consigned.
- Select the VMI (supplier side) check box.
- Preferably clear the Use Confirmation (Sales) check box, unless the supplier performs inventory
planning and the items involved are crucial to the customer's production
process, as can be the case in scenario Planning by supplier.
Step 2. ClustersIn the Clusters (tcemm1135m000) session, consider the following fields: Step 3. WarehousesIn the Warehouses (whwmd2500m000) session, set up the VMI warehouse. In the Consignment, Warehouse management by customer, and Planning by supplier scenarios, this is an administrative warehouse. Consider the following fields and check boxes: Cluster Include in Enterprise Planning Preferably select this check box if the supplier performs
supply planning for the VMI warehouse. Inventory Management Business Partner If you cleared the Inventory Management check box, select the business
partner (customer) who must carry out inventory management. This applies to
scenarios: External Site Preferably select Yes, because
being the supplier, the VMI warehouse belongs to the customer. Business Partner If you selected Yes in
the External Site field, in the current field (located
directly below the External Site field) enter the business partner who
represents the customer. Buy-from and Ship-from Leave these fields (located in the External Site group
box) empty. Sold-to If you selected Yes in the External Site field, in the current field (located in
the External Site group
box), enter the business partner who represents the customer. Ship-to If you selected Yes for External Site and the customer has various ship-to business partners for whom
the supplier performs supply planning, insert the appropriate ship-to business
partner.
Step 4. ItemTo set up items: -
In the Settings tab of
the Items - Ordering (tcibd2500m000) details session, preferably select Planned in the Order System field for scenarios in which the supplier performs supply
planning: -
In the General tab of the Items - Planning (cprpd1100m000) session, consider the following fields: Plan Item In the cluster segment (outer left) of this field,
select the external cluster defined in Clusters if the supplier performs supply
planning. Default Supply Source Preferably select Distribution if the supplier performs supply planning.
For direct deliveries, value Production/Purchase is required. Default Warehouse For all scenarios, enter the VMI warehouse specified in Warehouses. Maintain Master Plan It is not required 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 inventory is registered. If the customer performs warehouse
management, so the VMI warehouse is an administrative warehouse in the supplier's ERP system,
ownership registration on warehouse level is 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. For information about the ownership registration levels relevant
to each scenario, see above.
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 Sales.
For search level 1, the recommended
attribute for Search Attribute 1 is Item Group,
and for Search Attribute 2 it is Ship-to Business Partner. 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 Ship-to Business Partner. 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. -
For most scenarios, preferably select the
following check boxes: - Planning
- Order
- Logistics
- Invoicing
- Demand Pegging
For example, setting up planning terms and conditions might not
be necessary for scenario Consignment. 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, select Pay on Use.
- In the Planning Terms and Conditions (tctrm1135m000) session, consider the following fields:
Confirmed Forecast Use Confirmed Forecast Select this check box if the customer is to specify
which part of the forecast is confirmed. This field is unavailable if the Forecast received from Customer check box is
cleared. Specify Confirmed Forecast by For scenario Full VMI,
select Message. For the following scenarios, this field is
unavailable because the Use Confirmed Forecast check box is cleared: For scenario Planning by supplier select the value required in your business
environment.
Confirmed Supply Confirm Supply Preferably select this check box if the supplier is to
send a confirmation of the forecast to the customer. Confirmed Supply Based On Preferably select Confirmed Forecast if you must define the type of demand on which a supplier's
confirmed supply is based. Confirm Supply Horizon For scenario Full VMI,
preferably set the widest possible time fence. Otherwise, set the time fence as
required in your business environment.
Planning Replenishment Based On For the Full VMI scenario, preferably select Confirmed Supply. Otherwise, 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. This
applies to the following scenarios: Consider the following fields: - Method of Inventory Update
- Receiving Process
- Delivery Moments
For further information on these fields, see To update the administrative warehouse. - The Invoicing Terms and Conditions (tctrm1145m000) session allows you to determine how to
perform invoicing. You can fill the fields as required by your organzisation.
For further information on these fields, see the online Help of the Terms and Conditions module of Common.
Step 6. Sales contractsTerms and conditions are linked to sales contracts. When
you create a sales contract, in the Sales Contracts (tdsls3500m000) session: - In the Sold-to Business Partner field, insert the customer.
- In the Terms and Conditions ID field, link the appropriate
terms and conditions.
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