What is 'vendor-managed inventory' in SAP SCM-APO-CA - APO Cross-Application Components?

vendor-managed inventory - Overview

• Component: SCM-APO-CA

• Component Name: APO Cross-Application Components

• Description: Service provided by a vendor to its customer, whereby the vendor undertakes replenishment planning on behalf of the customer. Vendor-managed inventory is only possible if the customer regularly sends sales forecasts and in the case of a non-consigned VMI process stock data to the vendor.

vendor-managed inventory - Details

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  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 to reduce inventory costs and improve customer service levels. In SAP, VMI is implemented using the SCM-APO-CA APO Cross-Application Components. 
  
  How to use it: 
  In order to use VMI in SAP, the customer and supplier must first agree on the terms of the VMI agreement. This includes setting up a replenishment plan, defining the inventory levels, and setting up a communication system between the two parties. Once these steps are completed, the customer can set up the VMI process in SAP using the SCM-APO-CA APO Cross-Application Components. This includes setting up a replenishment plan, defining the inventory levels, and setting up a communication system between the two parties. 
  
  Tips & Tricks: 
  When setting up a VMI agreement in SAP, it is important to ensure that both parties are in agreement on all aspects of the agreement. This includes setting realistic inventory levels and ensuring that both parties have access to accurate data about inventory levels and customer demand. Additionally, it is important to ensure that both parties have access to accurate data about inventory levels and customer demand. 
  
  Related Information: 
  For more information on VMI in SAP, please refer to