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:

Scenario	Owner of the supplied goods at the customer's site	Responsible for managing the warehouse at the customer's site	Responsible for the supply planning
Full VMI	Supplier	Supplier	Supplier
Planning by supplier	Customer	Customer	Supplier
Warehouse management by customer	Supplier	Customer	Supplier

For more information, refer to the Vendor managed inventory.