Vendor Managed Inventory

Vendor managed inventory

Supply planning by the supplier is an aspect of vendor managed inventory (VMI). To give the supplier control over the inventory, the supplier defines the warehouse at the customer's location as warehouse in the supplier's LN system.

The supply planning by supplier can be applied in three scenarios as shown in the following table:

ScenarioOwner of the supplied goods at the customer's siteResponsible for managing the warehouse at the customer's siteResponsible for the supply planning
Full VMISupplierSupplierSupplier
Planning by supplierCustomerCustomerSupplier
Warehouse management by customerSupplierCustomerSupplier

 

For more information, refer to the Vendor managed inventory.