Exploring the Supplier-Managed Inventory Process Using Planned Shipments

Demonstrating the Supplier-Managed Inventory Process Using Planned Shipments

Objective

After completing this lesson, you will be able to explain the difference between SMI using planned shipment and SMI using replenishment order

Supplier-Managed Inventory Process Flow (Planned Shipment)

Supplier-managed inventory has two options/process variants, one is known as Planned Shipment and the other is Replenishment Order. Here, we will learn about the Planned Shipment option.

Below is the end to end process flow using the Planned Shipment option for Supplier-managed inventory.

End to end process flow for Supplier Managed Inventory using the Planned Shipment option

Prerequisites:

  • Material Master: JIT Sched. Indicator, Max Stock Level, Min Safety Stock, Period Indicator
  1. JIT Sched. Indicator:JIT Delivery Indicator set in Material Master Purchasing view
  2. Max Stock Level:Maximum Stock Level in Material Master MRP1 view
  3. Min Safety Stock: Minimum Safety Stock in Material Master MRP2 view
  4. Period Indicator: Period Indicator in Material Master MRP3 view
  • Purchasing Info Record

For a demonstration of the supplier-managed inventory Planned Shipment process, watch this video.

Planning and Demand Data in the Business Network

Take a closer look at the supplier's view in SAP Business Network

Log into SAP Business Network to review SMI-related data

Once you have logged into the Network, navigate to the Planning menu and select Planning Collaboration.

To view the Stock on Hand

Select the hyperlink in the status column.

Individual Data Planning

The supplier can review the material planning data in different time buckets (daily, weekly, monthly, yearly) by selecting View Details.

Select the boxes to show the fields on the system screen.

Exceptions Related to Projected Stock

The exceptions related to projected stock are highlighted:

Projected Stock Quantity Color Coding Overview

  • Green: On Track
  • Purple: Above Maximum
  • Orange: Below Minimum
  • Red: Out of Stock

On Track

The projected stock is shown in green.

Below Minimum

The projected stock is shown in orange.

Out of Stock

The projected stock is shown in red.

No Data

This is shown in grey.

Projected Stock Calculation

The system calculates the projected stock based on the following formula: Projected Stock Current Time Bucket = Stock on Hand - Gross Demand + Planned Shipment

In this example, Projected stock for 30th August = 1982 - 0 + 300

Projected Stock Calculation Formula

The system calculates the minimum and maximum proposals based on the following formulas:

Minimum proposal = Minimum stock - projected stock

Maximum proposal = Maximum stock - projected stock

Projected Stock Calculation Example

In this is example, the minimum proposal is -1282 and the maximum proposal is 2718.

Minimum Proposal (-1282) = Stock Min (1000) – Projected Stock (2282)

Maximum Proposal (2718)= Stock Max (5000) – Projected Stock (2282)

Find the Minimum and Maximum Stock on the screen (Min 1,000 Max 5,000)Looking at 30th of Aug on the screen, note the Maximum proposal of 2718 and the Minimum proposal of -1,282 and projected Stock of 2,282

Planned Shipment Entry

Looking at 30th of August on the screen, note that a Planned Shipment value of 300 has been entered.

Learning

SAP FacebookSAP YoutubeSAP LinkedIn