Differ. VMI(Vendor Managed Inventory) and SMI(Supplier Managed Inventory)?

[Former Member]

Hi all~

I'm beginner in SNC.

SNC have SMI scenario. But I think SNC-SMI is same as MM-VMI scenario.

• SMI

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http://www50.sap.com/businessmaps/1D59B26B277611D5B359000102ACA9A3.htm

The SMI process is a supplier-driven replenishment and planning process, which is based on min/max stock balance levels, on current demand, in-transits and planned shipments.

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• VMI

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[http://www50.sap.com/businessmaps/459B5C21A96411D3870B0000E820132C.htm|http://www50.sap.com/businessmaps/459B5C21A96411D3870B0000E820132C.htm]

With vendor managed inventory scenarios, manufacturers can offer their customers a value added service by performing the replenishment planning task for their business partners.

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Anyone can help to verify differ or same?

Thank you.

SKY.

[Former Member]

Thanks all of you.

Now I fully understood differ VMI and SMI.

Have a nice day!!

Best Regards.

SKY

[Former Member]

Hi SKY

The major difference between SMI & VMI is

SMI is inventory driven replenishment process run between an Original Equipement manufacturer & his supplier

VMI is demand driven replenishment process run between an OEM and his Customer.

Hope you got to know the major diff btw them.

Best Regards

Vinod

[Former Member]

Hello ,

To add to above two answers,in SNC supply chain is as follows.

SUPPLIER -

---

> MANUFACTURE -

---

> CUSTOMER

SNC as an aplication will be installed at Manufatcurer site.

Now if Supplier is managing inventory for manufacturer than it is SMI.In this case supplier will login into SNC ( hosted at Manufatcuring site ) and manage inventory.

If Manufacturer is managing inventory for CUSTOMER than it is VMI.

Basically SMI and VMI are mirror image of each other.

Hope it will help.

Regadrs

Rahul

[sumaghosh]

well explained!

[Former Member]

Hi SKY,

SNC SMI and VMI there is difference.

In SNC there are Supplier collaboration and Customer collaboration.

In Supplier collaboration organization who is implementing is a Customer and Customer collaboration organization who is implementing is a supplier.

SMI comes under Supplier collaboration and VMI comes under Customer collaboration.

SMI and VMI is a same concept difference is if you are customer then it is called SMI for you and if you are Supplier then it is called VMI.

Summary In SMI organization is Customer and VMI organization is a Supplier .

Thanks,

Nikhil

[sandeep_mandhana]

Hi,

SNC can demonstrate both the business processes - SMI as well as VMI.

In SNC SMI, your supplier manages the inventory for you depending on the Mim-Max levels set by you. SMI with RO scenario also enable the Suppliers to create Replenishment Order against the material that he has sent.

In SNC VMI, you, as a supplier, manage the inventory for your Customer. The customer would share the Inventory and Demand situation. SNC VMI provides additional features like Responsive Replenishiment, TLB.

Regards,

Sandeep