| # VMI business partner selection This topic describes how ERP Enterprise selects a supplier in a vendor managed inventory (VMI) situation. Some restrictions for the use of VMI functionality are also described. Supplier side For the VMI supplier, the customer is linked to the cluster segment of the item code. To carry out the planning for a customer, a valid terms and conditions agreements must be present for that customer. If you perform the planning for multiple customers for the same item, you link each customer to a different cluster; thus, you differentiate between the plan items for these customers. For more information, refer to To determine the VMI Relation. Customer side Only a single VMI supplier can carry out your planning for an item at any single time. However, you can switch from one VMI supplier to another. ERP Enterprise searches for suppliers with terms and conditions agreements effective between the current date ('now') and the scenario finish date. To select the effective VMI suppliers, the following rules apply: If ERP Enterprise finds multiple valid VMI suppliers, ERP Enterprise sorts the suppliers according to the effective dates and expiry dates of their respective terms and conditions agreements. If the effectivity period of one VMI supplier completely encloses the effectivity period of another VMI supplier, that other VMI supplier is ignored. As soon as a valid supplier becomes effective, ERP Enterprise selects that supplier as the VMI supplier. If, at a particular date, no supplier is effective as VMI supplier, no more VMI suppliers can be selected for later dates. For example, you cannot have a supplier carry out the planning in March, then use regular planning methods in April, and have the supplier carry out the planning again in May. If you try this, Enterprise Planning generates a signal and handles the second period (May in the example) by using the regular supply method. However, of the total period between the current date and the scenario finish date, you can use regular planning in the first part of the period, later, a VMI supplier can carry out the supply planning for a particular time, and in the last part of the period you can use regular planning again. Multiple sourcing Multiple sourcing is permitted, as long as no more than one of the suppliers is a VMI supplier. If you use multiple sourcing, the order planning procedure generates requirements and distributes the requirements over the available sources in the usual way. The demand that is allocated to the VMI supplier results in forecast that is sent to the VMI supplier. The other demand results in planned purchase orders or planned distribution orders. You can assign a priority to the various suppliers, but the VMI supplier always has priority 0, which is the highest priority. To view all active VMI suppliers and regular suppliers for a plan item, take the following steps: Start the Items - Planning (cprpd1100m000) session. Select the plan item. Click appropriate menu > Product Structure > Active Suppliers by Plan Item. Related topics Supply planning by supplier To determine the VMI Relation |