Create a VMI Relationship

On the Manage VMI Network page, you can create a vendor-managed inventory (VMI) relationship between suppliers, organizations, and item combinations.

To create a VMI relationship:

  1. In the Supply Chain Collaboration work area, click Manage VMI Network in the Tasks panel.

  2. On the Manage VMI Network page, click Actions > Create.

  3. On the Create Relationship dialog box, select the values for Organization.

  4. Select a value for Supplier.

    Note: The supplier must have at least one supplier site associated to the selected organization's requisitioning business unit to participate in a VMI relationship.
  5. Select a value for Scope.

    • Select Organization if the supplier is managing the item across all storage subinventories within the selected organization

    • Select Subinventory if the supplier is managing the item at one or more specific storage subinventories within the selected organization

  6. Select a value for Item:

    • If scope is Organization, only items associated with the selected organization that have an inventory planning method of min-max planning or supplier managed are allowed to participate in a VMI relationship.

    • If scope is Subinventory, only item subinventories associated with the selected organization that have an inventory planning method of min-max planning or supplier managed are allowed to participate in a VMI relationship.

  7. If scope is Subinventory, you must select at least one subinventory.

    Note: Item subinventories with the inventory planning method of min-max planning or supplier managed are required for the subinventory to participate in a VMI relationship.
  8. Select the default min-max quantity source to determine if the minimum and maximum inventory thresholds are managed by the supplier or the enterprise.

    Note: If inventory planning owner is enterprise, the min-max quantity source of the replenishment item is enterprise.
  9. Optionally, select a default requisition requester. This attribute determines who is listed as the requisition requester on the generated purchase requisition. If a value is provided at the relationship level, that value will override the defined requisition requester on the Manage Supply Chain Collaboration Settings page in the Setup and Maintenance work area.

  10. Click Save and Continue to save the new relationship.

Note: An item can only be managed by single supplier for each organization or subinventory.