Vendor Managed Inventory allows suppliers to manage customer stock levels
Inventory planning responsibility is shared with or transferred to vendors
VMI improves supply chain visibility and collaboration
The process helps reduce stock-outs and excess inventory
VMI is supported within SAP S/4HANA
The customer provides inventory and consumption data to the vendor
The vendor monitors stock levels at the customer location
The vendor creates replenishment proposals based on demand
Replenishment is triggered according to agreed parameters
Ownership of inventory follows contractual agreements
Materials must be correctly maintained for VMI processes
Business partner master data is required for vendors
Purchasing info records support VMI settings
Replenishment parameters define minimum and maximum levels
Accurate master data ensures smooth VMI execution
VMI settings are configured within purchasing processes
Special procurement indicators support VMI scenarios
Scheduling agreements are used for replenishment
Replenishment profiles control planning behavior
Configuration aligns system behavior with business rules
Inventory levels are monitored regularly
Stock consumption data drives replenishment proposals
Replenishment quantities are calculated automatically
Vendors can review stock information
Replenishment execution supports continuous supply
Scheduling agreements manage long-term supply
Delivery schedules support planned replenishment
Purchase orders may be created automatically
Goods receipt updates inventory levels
Inventory visibility is maintained throughout the process
Inventory ownership may remain with the vendor or customer
Consignment stock scenarios are supported
Stock valuation follows ownership rules
Financial postings reflect inventory movement
Accurate valuation supports financial reporting
Vendors are responsible for monitoring inventory levels
Customers provide accurate consumption data
Purchasing teams manage contracts and agreements
Warehouse teams manage goods receipt
Clear roles ensure effective VMI collaboration
