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 Vendor-Managed Inventory

 

Technical Data

Technical Name of Business Function

APO_VMI_CONS

Type of Business Function

Enterprise Business Function

Available as of

Enhancement Package 4 for SAP ERP 6.0

Technical Usage

ECC Software Component

Logistics and Accounting (SAP_APPL)

ECC Application Component

Cross-Application Components (CA), Sales (SD-SLS)

Business Intelligence Content

Not relevant

SAP Enterprise Services

Not relevant

JAVA Software Component

Not relevant

Portal Content

Not relevant

Additional Content Available in Other SAP Applications

As of SAP SCM 7.0, new functions exist in SAP Advanced Planning and Optimization to enable the implementation of the Vendor-Managed Inventory process.

Business Function Requiring Activation in Addition

Not relevant

You can use this business function to implement an integrated vendor-managed inventory scenario in SAP ERP and SAP APO for a standard or a consigned process. Vendor-managed inventory enables the vendor to determine replenishment requirements for the customer and replenish the stock of its materials at the customer's site. If VMI is combined with customer consignment, the vendor owns and manages this stock until the customer withdraws the material for consumption. This business function also supports the parallel use of a consigned and a non-consigned scenario with new functions.

Integration

This business function uses the switch MM_OM1_SFWS_SC from the business function ERP OPS Outsourced Manufacturing (LOG_MM_OM_1).

Prerequisites

You have activated the following switches:

  • CAVE_SFWS_VMI_CONS

  • CIF_SFWS_STK_INTRANS

  • CIF_SFWS_UI_VMI_CONS

  • CIF_SFWS_VMI_CONS

  • MM_OM1_SFWS_SC

You have implemented the following Customizing activities in Customizing for SAP ERP:

  • Define Customer/Plant Assignment and Configure ATP Check

  • BAdI: VMI Third Party Logistic Provider Scenario

Features

This business function includes the following new functions:

  • Shipment split

    For a parallel use of a consigned and a non-consigned VMI process, you can execute a grouping of TLB shipments in SAP APO before publishing the shipments to SAP ERP. For more information, see SAP Library for SAP Supply Chain Management on SAP Help Portal at Start of the navigation path http://help.sap.comInformation published on SAP site Next navigation step SAP Advanced Planning and Optimization (SAP APO) Next navigation step Supply Network Planning Next navigation step Vendor-Managed Inventory Next navigation step Shipment Split in the VMI Scenario End of the navigation path.

  • Automatic ATP check of TLB shipments

    You can set up an automatic ATP check of TLB shipments in SAP ERP. The SAP ERP system executes the ATP check after you have published the TLB shipments from SAP APO, before it saves the relevant sales order. For more information, see SAP Help Portal at Start of the navigation path http://help.sap.comInformation published on SAP site Next navigation step SAP Advanced Planning and Optimization (SAP APO) Next navigation step Supply Network Planning Next navigation step Vendor-Managed Inventory Next navigation step Automatic ATP Check of TLB Shipments in SAP ERP End of the navigation path.

  • Improved master data integration

    By activating this business function, you enable the system to automatically create ship-to location products in SAP APO via CIF based on customer master data in SAP ERP.

  • Consignment stock in transit

    You can use the new key figure Consignment Stock in Transit to view intransit consignment stock data, and integrate it in the planning process. For more information, see SAP Help Portal at Start of the navigation path http://help.sap.comInformation published on SAP site Next navigation step SAP Advanced Planning and Optimization (SAP APO) Next navigation step Supply Network Planning Next navigation step Vendor-Managed Inventory Next navigation step Consignment Stock in Transit in SAP APO End of the navigation path.

  • Third party logistic provider scenario

    If the special stock partner defined in the customer master data is a third party logistic provider, the system updates consignment stock at the corresponding customer location in SAP APO via CIF.