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Former Member
Jun 23, 2012 at 06:23 AM

Monitor component stock at vendor


Hello Experts,

We have requirements to monitor the components stocks lying at vendors place,

Current process details,

- Company sends standard purchase order to 5 different vendors to supply the finished product.

- Material / components required to manufacture the finished products are procured by these vendors directly from other external vendors.

- Our company do not place any PO to component supplier(external vendor).

- Also these components do not exist as material in our SAP system, since company do not own any inventory for these components.

Problem is - there are 35 different varieties of a component, which are of high value. And their supply lead time is quite high - 5 months.

To overcome the situation of component shortage, company want to monitor the component stock at each vendor. .

So that PO quantity and delivery date can be planned effectively for the finished products.

Kindly suggest possible solutions / options available in SAP, that would help to monitor the component stock at vendor and plan the PO qty for each vendor

Sub-contracting process is best fit process, but company do not want to implement this, as component inventory is owned by vendor.

This option is completely ruled out.

Company might accept to create component as material in SAP, but will not own inventory.

Appreciate your suggestions.