Vendor Managed Inventory describes the transition of operational MRP management from the recipient to the vendor. The vendor takes on responsibility for the entire delivery process and inventory management. Subsequent deliveries will only be made if an actual consumption has occurred at the recipient. The vendor takes over operative replenishment planning and delivery control. Thereby, VMI provides the vendor with a transparency and flexibility, which cannot be achieved in case of classic quantity- and date-based POs, and offers considerable optimization options in production and transport.
At the same time the recipient significantly relieves his MRP and raises his liquidity. GIB VMI enables the vendor to access the recipients SAP ERP system with customizable limits – even if he does not use SAP himself. This means that smaller vendors are included as well – efficiently and easily.
- Transition of responsibility for operational MRP management to the vendor
- More responsibility and flexibility in material requirements planning for the vendor
- Changeover to consumption-based replenishment
- More flexibility and transparency for vendors
- Time savings for MRP controllers
- Optimized inventories increase liquidity
- Purchasing & MRP
Relevant MRP information does not reach the vendors. The fixed setting of delivery dates and quantities makes it difficult for the vendor to realize a foresighted planning and often results in delivery delay and high transportation costs.
In GIB VMI the vendor obtains all relevant MRP information from the customer system. Thus he gains the necessary room to optimize his transports and delivery quantities, his ability to deliver and his production as well as his delivery reliability.
On the basis of SAP requirements forecast, relevant VMI stock limits (maximum stock, upper and lower reorder point, safety stock) are permanently checked at material level, adjusted if necessary, and transferred to the VMI Web-Cockpit.
Tab "Stock/requirements list" with data as in SAP MD04 and graphical display of stock development in the analysis period.