<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/wh/onlinemanual/000468" xml:lang="en">
   <Header>
      <Title>Warehouse management by customer</Title>
      <Keyword type="header" order="d1e2610077">
         <Level1>VMI</Level1>
         <Level2>warehouse management by customer</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2610082">
         <Level1>Scenario</Level1>
         <Level2>warehouse management by customer</Level2>
      </Keyword>
   </Header>
   <AimSection ID="WH_mgt_by_LSP">
      <Paragraph>The customer retrieves components from stock that is owned and
		planned by the supplier, but managed by themselves.</Paragraph>
      <Paragraph>The <Link href="/baanerp/wh/glossary/glossary#000471" role="glossary">VMI warehouse</Link> is modeled as an <Link href="/baanerp/wh/glossary/glossary#000467" role="glossary">administrative warehouse</Link> in the supplier's
		ERP system because they perform supply planning and is they are owners of the
		goods. In the customer's ERP system, the VMI warehouse is modeled as a regular
		warehouse, because they are responsible for warehouse management.</Paragraph>
      <Paragraph>Just as in the full VMI scenario, in this scenario supply
		planning is based on either min/maximum inventory level replenishment or more
		detailed supply planning, in which the supplier is required to commit
		themselves to the scheduled supply quantities.</Paragraph>
   </AimSection>
   <ProcedureSection>
      <Steps>
         <Step ID="WHmgt_by_cust_step1_cust_sends_planned_consumption">
            <StepTitle>Customer sends planned consumption to supplier</StepTitle>
            <Paragraph>
               <Link href="/baanerp/wh/onlinemanual/000463#Full_VMI_step1_cust_sends_requirements_to_supp"
                     role="manual"
                     Update="No">Customer sends planned consumption to supplier</Link>
            </Paragraph>
         </Step>
         <Step ID="WHmgt_by_cust_step2_supp_plans_supply">
            <StepTitle>Supplier plans supply</StepTitle>
            <Paragraph>
               <Link href="/baanerp/wh/onlinemanual/000463#full_VMI_step2_supp_plans_supply"
                     role="manual"
                     Update="No">Supplier plans supply</Link>
            </Paragraph>
         </Step>
         <Step ID="WHmgt_by_cust_step3_suppl_replenishes_cust_stock">
            <StepTitle>Supplier replenishes the customer's stock</StepTitle>
            <Paragraph>The supplier replenishes the <Link href="/baanerp/wh/glossary/glossary#000471" role="glossary">VMI warehouse</Link> as required.</Paragraph>
            <Paragraph>The customer registers the receipt of the goods in the VMI
			 warehouse.</Paragraph>
         </Step>
         <Step ID="Planning_by_suppl_step4_invoicing_by_suppl">
            <StepTitle>Customer sends inventory update message to
			 supplier</StepTitle>
            <Paragraph>To notify the supplier of the receipts, the customer sends
			 RosettaNet-XML message Inventory Report/Receipt to the supplier. This message
			 triggers an inventory receipt to update the inventory levels in the supplier's <Link href="/baanerp/wh/glossary/glossary#000467" role="glossary" Update="No">administrative warehouses</Link>, which allows the
			 supplier to adequately perform supply planning.</Paragraph>
            <Paragraph>Other means of communication are also used, in which case
			 the receipts are manually entered in the customer's and the supplier's
			 administrative warehouses. The received quantities are inserted in the
			 customer's purchase schedule for each supplier.</Paragraph>
         </Step>
         <Step ID="Planning_by_suppl_cust_issues_stock">
            <StepTitle>Customer issues stock</StepTitle>
            <Paragraph>The customer issues components for production or sales,
			 because the customer is responsible for warehouse management for the VMI
			 warehouse.</Paragraph>
         </Step>
         <Step ID="Planning_by_suppl_cust_notifies_suppl_of_issues">
            <StepTitle>Customer notifies supplier of issues</StepTitle>
            <Paragraph>The customer notifies the supplier of the stock issues by
			 means of RosettaNet-XML message Distribute Inventory Report. The supplier needs
			 this information to effectively perform supply planning.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Customer pays supplier</StepTitle>
            <Paragraph>The customer pays the supplier.</Paragraph>
         </Step>
      </Steps>
   </ProcedureSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000494" role="manual">Warehouse management by customer - procedure</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000463" role="manual">Full VMI</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000462" role="manual">Overview of VMI business scenarios</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000500" role="manual">Overview of terms and conditions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000461" role="manual">Inventory ownership in Warehouse Management</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>