Performing the supply planning for your customer - Setup

This topic describes how to set the system up to perform the supply planning for your customer in a vendor managed inventory (VMI) situation.

  1. Implemented software components

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

    • Terms and Conditions

      Under Modules, select the Terms and Conditions check box.
    • Ownership External

      Under Concepts (Logistics), select the Ownership External check box.
    • VMI (supplier side)

      Under Concepts (Logistics), select the VMI (supplier side) check box. This will make the supplier side of the vendor managed inventory (VMI) functionality available.
  2. Planning Cluster

    In the Planning Clusters (tcemm1135m000) session, define a cluster that represents your customer's site.

    Set the following fields to the appropriate values:

    • External

      To associate this cluster with a sold-to business partner, select the External check box.
    • Sold-to Business Partner

      Enter the customer for which you perform the supply planning in the Sold-to Business Partner field.
    • Ship-to Business Partner

      If you deliver goods to multiple sites for the same customer, specify the ship-to business partner that represents the customer site where the items must be delivered.
  3. Warehouse

    In the Warehouses (whwmd2500m000) session, define the warehouse at the customer's site.

    Set the following fields to the appropriate values:

    • Include in Enterprise Planning

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

      Under Relationships > Site, in the External Site field, select Yes.
    • Planning Cluster

      Under Relationships > Site, in the Planning Cluster field, enter the cluster you defined in the previous step.

    Note: If you will be managing the inbound and outbound operations in this warehouse, you must also select the Inventory Management check box.

  4. Terms and conditions agreement (Planning)

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

    • Responsible for Supply Planning

      To specify that you perform the supply planning for your customer, select the Responsible for Supply Planning check box.
    • Forecast

      For instructions on the fields under Forecast, refer to Forecast (VMI).
    • Inventory Levels

      For instructions on the fields under Inventory Levels, refer to To work with minimum and maximum inventory.
    • Confirmed Forecast

      For instructions on the fields under Confirmed Forecast, refer to Confirmed forecast and unconfirmed forecast and How to set up confirmed forecast (supplier side).
    • Confirmed Supply

      For instructions on the fields under Confirmed Supply, refer to Confirmed supply (VMI).
    • Planning

      For instructions on the fields under Planning, refer to Replenishment methods (VMI) and Planning methods (VMI).
  5. Terms and conditions agreement (Order)

    In the Terms and Conditions (tctrm1100m000) session, select the terms and conditions agreement you defined in the previous step.

    To make the order-related parameters in the terms and conditions group available, in the Terms and Conditions Search Level (tctrm1610m000) session, select the Order check box.

    Start the Terms and Conditions Line (tctrm1620m000) session, click the Order tab, and enter a record. Set the fields to the appropriate values.

    The value of the Transfer Type field determines if LN will use warehouse transfers or sales transfers to deliver the items to the customer's warehouse. In general, warehouse transfers are the most simple solution, but sales transfers offer some additional features.

    If the Payment field has the value Pay on Receipt, the Transfer Type field cannot be set to Warehouse Transfer.

  6. Sales contract

    In the Sales Contracts (tdsls3500m000) session, define a sales contract between you and your customer.

    Set the following fields to the appropriate values:

  7. EP Parameters

    In the Planning 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 Forecast

      To specify whether you accept all forecast messages without checking, use the Automatic Accept Forecast check box.
  8. Plan items

    In the Items - Planning (cprpd1100m000) session, define a plan item that represents the item inventory at your customer's site, for the item you deliver to your customer. In the plan item's cluster segment, enter the planning cluster you defined in step 2.

    Set the following fields to the appropriate values:

    • Supply Source

      To supply the item by using planned distribution orders, set the Supply Source field to Distribution.

      To supply the item by using direct delivery from your suppliers to your customer, set the Supply Source field to Item Source.

    • Ordering Warehouse

      Enter the warehouse you defined in step 3 in the Ordering Warehouse field.
    • VMI Relation

      If you run the planning process, LN automatically sets the VMI Relation field to Create Supplier Forecast.

    To build up inventory at your own site, define a corresponding plan item that has a planning cluster that is associated with the site from where you deliver the item.

  9. Supplying relationships

    In the Supplying Relationships (cprpd7130m000) session, define the supplying relationship from your site to your customer's site.

    Note: If you use direct delivery or manual replenishment, you do not require supplying relationships.

    For more information on the use of multicompany distribution orders to supply your customer, refer to Transferring multicompany distribution orders.

  10. 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.