vmi slides

7/31/2019 VMI Slides

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Agenda

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Overview about VMI

Pre-requisites for Oracle VMI

Oracle Architecture for VMI

Collaborative Planning

Configurations for VMI

VMI Benefits

Option 1: Standard VMI

Option 2: VMI with consignment model


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Overview on VMI

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Vendor Managed Inventory (VMI) is a procurement and planningpractice in which a company delegates key inventory managementfunctions to one or more of its suppliers. Under this arrangement thesupplier determines the items, quantities, and delivery schedules onbehalf of the customer based on information it receives from the

customers inventory and procurement systems.

Using VMI, manufacturers and distributors can anticipate customerneeds and provide inventory more proactively than is possible usingtraditional procurement methods

This Presentation will address how VMI can be accomplished by usinga single, well-integrated suite of applications ( Oracle )


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Pre-Requisites forVMI

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Oracle Applications 11i prior to 11.5.10.2 with the following modules

Oracle Inventory

Oracle Purchasing

Oracle Planning (APS)

Collaborative planning is installed and Configured

iSupplier Portal integrated with Collaborative planning for Supplier Collaboration(Optional)

For VMI with Consignment model following modules need to be at 11.5.10.2

Oracle Inventory

Oracle Purchasing

Oracle Payables

Cost Management Warehouse Management


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Oracle Architecture for VMI

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Collaborative Planning

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VMI Configuration Steps

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Enable VMI at the ASL level (Item Vendor Combination)

Enter threshold values and other VMI related parameters at ASL level

Setup VMI related profile options

Run initial Data collection with complete refresh including user-company association

Run VMI Replenishment Engine in Collaborative planning after datacollection

Configure Planner Workbench to handle VMI exceptions by Planners

Optionally Configure to do Auto Replenishment by checking AllowAutomatic checkbox at ASL

Configure isupplier portal to be linked to Collaborative planning toeffectively use Supplier Collaboration


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VMI Benefits

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Benefit for the supplier: The ability to access customer on-hand quantity information, forecast

information, minimum and maximum inventory thresholds, in-transitinventory quantities and expected receipt dates in order to determinewhen to ship goods

The ability to manually execute an approved purchase requisition orblanket release on the customer system and to track the status of theorder through receipt, storage, and consumption by the customer

The ability to automate replenishment proposalsBenefit for the customer: The ability to differentiate between goods that must be replenished by a

supplier from those which are internally planned and replenished The ability to consume VMI materials in Work-In-Process or to

explicitly take responsibility for planning from the supplier as needed The ability to better estimate suppliers production schedules based on

anticipated demand from the customer.


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Option 1: Oracle VMI

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Option2: Oracle VMI with Consignment

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