The supplier examines the information received from the supplier and the search for a contract is concluded on the basis of an existing agreement between the supplier and the customer. If the customer needs a product, he places an order with a supplier. The customer must have full control over the timing and size of the order placed, based on one of the examples above. The customer maintains the inventory plan. Some points related to this summary: – “Better visibility will make it possible to move from air freight to sea freight” In my eyes, it is a rather strong expression, without knowing the LTs of air and sea transport, the dynamics of demand and the cost of material stocks. – As mentioned in some previous comments, there are many things to agree between the customer and the supplier in the VMI logistics model. This coincides with the conclusion of my master`s thesis “already covered with dust” for the implementation of VMI (with consignment): the most difficult and tedious part of the implementation project is the legal agreement. Configuring transport and system-to-system connections with developed messages and associated functionality in Legacy systems with SOX requirements is the simplest part of the implementation. ASN differs from the order confirmation, both in time and in substance. The 856 is sent to the customer after shipment at the place of the time of the order. This agreement can improve supply chain performance, but reduce inventory and eliminate defects.
Mr. Ahmed Thank you very much for VMI Insight. How suppliers handle or manage the expected increase during the preparation period. .