Vendor managed inventory belongs to you (the Vendor) but is stocked at your Customer's company. Your Customer must manage that inventory on your behalf and report on usage and monthly inventory balances. When your customer uses the material, he must report weekly or monthly usage. You will enter a Sales order to record his use of the material. Microsoft Dynamics AX Multi-Site multi-warehouse capability allows us to do this.
How do we manage this?
1. Create a separate warehouse for the Vendor managed Inventory. Each Vendor managed inventory Customer would have a different Warehouse. The MRP system recommends the transfer of material from your main inventory to stock his remote consignment warehouse.
2. The customer reports monthly or weekly usage from the consignment warehouse, and your company enters Sales orders to record the material usage.
3. The Customer makes payments for all material used, based upon the sales orders.
4. We expect that the Customer will report month end closing Inventory at the consignment warehouse. We will reconcile the inventory and write off and inventory differences.
|
