Enhance your SAP® system landscape and include Vendor Managed Inventory (VMI) functionalities

Vendor Managed Inventory (VMI)

Vendor managed inventory (VMI) software: The modern approach to cross-company supply chain optimisation

Software-controlled vendor managed inventory (VMI) enables customers to inform their suppliers about stocks and planned consumption at regular intervals through their ERP systems. Following this, disposition is initiated with the supplier. Within the framework of VMI, minimum and maximum delivery quantities, minimum and maximum stocks or assured storage ranges are also agreed.

Why SAP® ERP / SAP S/4HANA® quickly meets its limits when it comes to vendor managed inventory (VMI)

When it comes to automated replenishment control, SAP® ERP / SAP S/4HANA® has hardly any distinct functionalities and rules for

  • minimum or maximum limitations,
  • stock ranges,
  • replenishment strategies,
  • best before dates and remaining shelf lives as well as
  • specific restrictions.

Data exchange between the SAP® environments of the VMI partners: real time monitoring and controlling of the demand and stock situation

The ORSOFT Manufacturing Workbench processes SAP® ERP or SAP S/4HANA® system data from both VMI parties, evaluates the demand and stock situation of the materials and generates sales orders as a result. During the process, additional sales can also be forecast and procurement proposals initiated. When creating procurement proposals, further constraints such as available capacity, limited production capacities, optimal disposition of limited product quantities or limited availability of raw materials can also be incorporated into the scheduling process.

Depending on the customer’s needs, these information is sent to him via EDI and must be confirmed or immediately serves as a requirement trigger in SAP® ERP or SAP S/4HANA®.

Complete embedding of VMI into the SAP® system landscape

Die Übertragung der Kundendaten erfolgt über standardisierte Schnittstellen (z.B. EDI) automatisiert in das übergeordnete SAP® ERP / SAP S/4HANA®. Die Lösung ist vollständig in die SAP®-Systemumgebung integriert und nutzt ausschließlich die Stamm- und Bewegungsdaten des SAP® ERP / SAP S/4HANA®. Die Nutzung der Software erfordert zudem keine separate Hardware.

Customer data interchange with the SAP® ERP / SAP S/4HANA® control system is automatically processed through standardised interfaces (e.g. EDI). The software solution is thus fully integrated into the existing SAP® system environment and utilizes only the master and transaction data of SAP® ERP / SAP S/4HANA®. Moreover, the use of the system does not require any separate hardware.

Smart management of your cross-company supply chains

Your advantages through Vendor Managed Inventory (VMI) with ORSOFT Manufacturing Workbench

  • Long-term and stable customer-supplier relations
  • Time and cost optimised management of material supplies for both parties
  • Integration and coupling of the customer system with that of the vendor
  • Up-to-the-minute exchange of stock, demand and supply information
  • Fully automated disposition process with simulated procurement proposals
  • Creation of forecasts in case of non-maintenance of demands from customer side
  • Automated transfer of customer data via standardised interfaces (e.g. EDI) into SAP® ERP / SAP S/4HANA®
  • Complete integration into and exclusive use of master and transaction data from SAP® ERP / SAP S/4HANA®
  • Clever dashboard with overviews of the current planning situation
  • Evaluation of demand and inventory situations at both the customer and supplier enables agile action in day-to-day operational planning
  • Specific arrangements – such as confirmation of deliveries by the customer – can be implemented individually

Get in touch with ORSOFT

Dr. Martin Kohl
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