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Sapphire Rishel Improve Supply Chain Efficiency With Vendor Managed Inventory

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Vendor-managed inventory (VMI) allows vendors to manage inventory levels at customer sites. It can provide benefits such as reduced inventory costs, increased supply chain visibility, more frequent replenishments, and improved customer service. Key considerations for implementing VMI include integration of vendor and customer systems and clear agreements on responsibilities. SAP can support VMI through configurations to material master records, purchasing information, and stock determination rules.

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Improve Supply Chain Efficiency with Vendor-Managed Inventory Bruce Rishel, CSCP May 5, 2008
VMI Defined ,[object Object],[object Object]
Scope ,[object Object],[object Object],[object Object],[object Object]
Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object],Done right, VMI can lead to many supply chain improvements
Reduced Inventory Holding Costs ,[object Object],[object Object],[object Object]
Visibility ,[object Object],[object Object]
Replenishment ,[object Object],[object Object]
Customer Service ,[object Object],[object Object]
Importance ,[object Object],[object Object],[object Object],The potential importance of vendor managed inventory on the supply chain can not be overstated
Challenges ,[object Object],[object Object],[object Object]
Considerations ,[object Object],[object Object],[object Object],[object Object]
Process Flow - VMI Replenishment
Process Flow - VMI Fulfillment
SAP Solution - Setup ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SAP Solution – Material Master
SAP Solution - Material Master
SAP Solution - Material Master
SAP Solution – Info Record
SAP Solution – Source List
SAP Solution – Configuration
SAP Solution – Configuration
SAP Solution – Configuration
SAP Solution – Process: MRP ,[object Object],[object Object],[object Object],[object Object]
SAP Solution – Process: Receiving ,[object Object],[object Object],[object Object],[object Object]
SAP Solution – Process: Fulfillment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Take Home Thoughts ,[object Object],[object Object],[object Object]

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