<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/wh/onlinemanual/000467" xml:lang="en">
   <Header>
      <Title>Planning by supplier</Title>
      <Keyword type="header" order="d1e3004608">
         <Level1>VMI</Level1>
         <Level2>planning by supplier</Level2>
      </Keyword>
      <Keyword type="header" order="d1e3004613">
         <Level1>Scenario</Level1>
         <Level2>planning by supplier</Level2>
      </Keyword>
   </Header>
   <AimSection ID="WH_mgt_by_LSP">
      <Paragraph>The customer retrieves components from stock that is owned and
		managed by themselves. The supplier is responsible for supply planning.
		Therefore, the supplier determines the stock levels in the warehouse, but does
		not remain the financial owner of the goods.</Paragraph>
      <Paragraph>The <Link href="/baanerp/wh/glossary/glossary#000471" role="glossary">VMI warehouse</Link> is modeled as a regular warehouse in the
		customer's ERP system because they perform warehouse management. Furthermore,
		the customer is the owner of the goods. To enable adequate supply planning, the
		VMI warehouse is modeled as an <Link href="/baanerp/wh/glossary/glossary#000467" role="glossary">administrative warehouse</Link> in the supplier's
		ERP system. The advantage for the supplier is that they can allocate goods to
		their customers at the latest moment, and enhance flexibility and
		reliability.</Paragraph>
      <Paragraph>Just as in the full VMI scenario, in this scenario supply
		planning is based on either minimum/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="Suppl_planning_by_suppl_step1">
            <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="Suppl_planning_by_suppl_step2_supp_commits">
            <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="Planning_by_suppl_step3_supp_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>
            <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 administrative warehouse
			 and the supplier's administrative warehouse. The received quantities are
			 inserted in the customer's purchase schedule for each supplier.</Paragraph>
         </Step>
         <Step ID="Planning_by_suppl_step4_invoicing_by_suppl">
            <StepTitle>Supplier sends invoice to customer</StepTitle>
            <Paragraph>Because the customer owns the components on receipt, the
			 supplier invoices the customer at regular intervals; self-billing by the
			 customer is not practicable in this scenario.</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 ID="Planning_by_suppl_cust_notifies_suppl_of_issues">
            <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/000463" role="manual">Full VMI</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000500" role="manual">Overview of terms and conditions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000462" role="manual">Overview of VMI business scenarios</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000461" role="manual">Inventory ownership in Warehouse Management</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>