Supplier Managed Inventory

Kinetic ERP
1

I have a one-off situation where we will receive 1,250 switches from our vendor next month. However, we will only be invoiced for 250 switches per month until the full 1,250 units are accounted for.

To manage this, I’m proposing the following approach:

  • Create a non-nettable bin designated for the vendor and receive the full 1,250 switches into this bin.
  • As we are invoiced for 250 units each month, we will transfer that quantity from the vendor bin into our regular warehouse bin.

Does this approach make sense for the situation? Am I missing any key considerations?

2

What about using the Supplier Managed Inventory functionality in Epicor.

Here you define a bin as supplier managed and receipt the stock into those bins.

At this point you do not own the stock financially.

The stock goes onto your balance sheet, the moment the stock is transferred from the supplier bin, to a standard warehouse bin.

We use this and it works well.

1 Like
3

Ok that means our approach is incorrect and we not using VMI functionality.

4

@sk.patchai if you make the bins non-netable, MRP will not see the parts in stock driving a suggestion to purchase more based on your demand.
Do you want to show this inventory on your stock status and balance sheet?
If not - you may want to receive the parts to inspection and place all of them into DMR.
When you are invoiced, move the parts out of DMR and into inventory.

This gives you a standard way of setting parts to the side while being able to run a standard report of open DMR balance that you want to reduce.

5

Thank you, Larson, for the explanation