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handling vendor's inventory

Dear All,

what could be the possible ways to handle this scenario in sap ??

there are following reason of tracking vendor's inventory

1) to keep record of the total cost of that raw material that he's producing & providing us on the basis of that track we revise the raw material price that we are procuring form that vendor.

2) there are some critical parts that he use in those raw material. we also check the no' of those parts he's procuring from some vendor & supplying to us along with that raw material

i.e if he have procured 10 of those critical parts from some vendor & let say one critical parts is used in one of the raw material that he's producing for us . so we keep track no' of critical parts he procured from some vendor = no' of raw material he supplied to us.

3) to make sure timely delivery of his supplies as there are some material that he's using to manufacture our raw material .In case of shortage of those material, his production is delayed which will effect his deliveries of raw material to us

So we track all his inventory & notify him time to time for procurement of those critical parts that might effect production of raw material & deliveries

This is not our inventory we basically keep track of quantity ( to make sure we receive our part on time) & costing (to revise that raw materials cost).

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  • Posted on Jan 15, 2016 at 05:55 AM

    Hi,

    May I know how your company will come to know that your vendor is placing PO for a critical part with another vendor and when he receives material from the other vendor. Could you please explain.

    Regards,

    AKPT

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    • again we have to calculate the the costing of our material manually. as we determine the cost that vendor incur in manufacturing, his total cost overheads etc. & leave his profit margin & after negotiating revise that material cost in system.

      In case 2nd vendor increase his good price the cost of our vendor would increase which we impact our material price as well , and as all the costing etc. for our vendor is done by us we need to know recalculate our material cost & price to determine new price.

      is it possible to take the price of those components (critical paths) in system which will not effect our accounting entries through any material type or something ?

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