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July 23, 2021

7/23/2021 11:46:00 PM

 What is VMI(Vendor Managed Inventory)?

 Vendor managed inventory (VMI) is a supply chain agreement where the manufacturer or supplier takes control of the inventory management decisions for the seller or retailer. 

The vendor and customer are bound by an agreement which determines inventory levels, fill rates and costs.

Vendor Managed Inventory or VMI is an integration process whereby vendors of a material manage as many factors of the supply chain as possible. ... By sharing this information, the buyer enables the supplier to determine the order size

A successful VMI solution requires three key components: a Forecasting Process, a Replenishment Process and Performance Monitoring


  1. Setup and define Planner
  2. Define an Item(Inventory Master Item)
  3. Create a Approve Supplier LIst
  4. Create a BPA(Blanket Purchase Agreement)
  5. Assign the BPA to the Approve Supplier List
  6. Define Sourcing Rule
  7. Assign the Sourcing rule to the Sourcing Assignment Set.
  8. Set the Sell Billing option at the Supplier level as PAY ON RECEIPT
  9. Create a User for the Supplier
  10. Define the password for the Supplier
  11. Enable instance for Advance Supplier Chain Planning
  12. Run the program “Planning data collection purge staging table” with the parameter for Validation as NO
  13. Later run 2 programs Planning ODS data pull and Planning ODS load
  14. Once the above two program completes run the Program VMI REPLENISHMENT ENGINE
  15. Run the script POS_UPG_USR.sql for loading ISUPPLIER Portal

.For fusion :

Example Item :HP8001    copy this item ..

1)Create Blank Purchase Order
2)create Blanket purchase agreement
3)Manage VMI Network-
4)Refresh VMI Replishment Data
5)Add role Vendor-Managed Inventory Analyst to user to enable inventory in Supplier   Portal
6)Upload min-max quantity using supplier portal
7)Create Replishment Request
7)Run Vmi Process Replenishment Request
8)It will create Purchase orders

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