What is vendor-managed inventory in SAP IS-R - SAP for Retail?

SAP Term: vendor-managed inventory

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail Service provided by a vendor for a customer, whereby the vendor plans material requirements in the customer's company. Vendor-managed inventory is only possible if the vendor has access to the customer's current stock and sales data. In the ERP system, the following functions are available for vendor-managed inventory: Transfer of stock and sales data by EDI Receipt of stock and sales data by EDI Replenishment planning for customers Creation of a purchase order for an external EDI order acknowledgment &EXAMPLE& Assuming that both the vendor and the customer are using an ERP system, the process could be implemented as follows: Transfer of stock and sales data by EDI The customer sends the current stock and sales data for a particular material to the vendor using a special IDoc PROACT. Receipt of stock and sales data by EDI In the vendor's R/3 system, the sales data for the material is updated in an information structure of the information system. The stock data is entered in the replenishment

Smart SAP Assistant

• Key Concepts: 
  Vendor-managed inventory (VMI) is a supply chain management strategy in which the supplier of a product is responsible for managing the inventory of that product at the customer's location. This strategy is used in SAP for Retail's IS-R module to allow suppliers to monitor and manage the inventory levels of their products at the customer's store. 
  
  How to use it: 
  In SAP for Retail, VMI is used to allow suppliers to monitor and manage the inventory levels of their products at the customer's store. The supplier can access real-time data on the customer's inventory levels and can adjust their supply accordingly. This helps ensure that the customer always has enough stock on hand to meet demand. 
  
  Tips & Tricks: 
  When using VMI, it is important to ensure that both the supplier and the customer are on the same page regarding inventory levels. The supplier should be aware of any changes in demand or other factors that could affect inventory levels, and should adjust their supply accordingly. Additionally, it is important to ensure that both parties have access to accurate and up-to-date data on inventory levels. 
  
  Related Information: 
  VMI is just one of many supply chain management strategies available in SAP for Retail's IS-R module. Other strategies include just-in-time (JIT) delivery, cross-docking, and consignment stocking. Each strategy has its own advantages and disadvantages, so it is important to consider all options before deciding which one is best for your business.