| # Warehouse management by customer The customer retrieves components from stock that is owned and planned by the supplier, but managed by themselves. The VMI warehouse is modeled as an administrative warehouse 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. 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. Step 1. Customer sends planned consumption to supplier Customer sends planned consumption to supplier Step 2. Supplier plans supply Supplier plans supply Step 3. Supplier replenishes the customer's stock The supplier replenishes the VMI warehouse as required. The customer registers the receipt of the goods in the VMI warehouse. Step 4. Customer sends inventory update message to supplier 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 administrative warehouses, which allows the supplier to adequately perform supply planning. 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. Step 5. Customer issues stock The customer issues components for production or sales, because the customer is responsible for warehouse management for the VMI warehouse. Step 6. Customer notifies supplier of issues 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. Step 7. Customer pays supplier The customer pays the supplier. Related topics Warehouse management by customer - procedure Full VMI Overview of VMI business scenarios Overview of terms and conditions Inventory ownership in Warehouse Management |