Difference Between SMI and VMI in SAP SNC

VMI vs SMI

VMI vs SMI

I am providing a small description of the difference between SMI and VMI scenarios in SAP Supplier Network Collaboration.

SMI: Supplier Managed Inventory

VMI: Vendor Managed Inventory

Let’s start with an example business scenario.

A Manufacturing company M is manufacturing a product P. For manufacturing P the company needs raw material ‘R’ which is supplied by supplier ‘S’. After manufacturing the company sells it to it’s customer ‘C’.

Now if Supplier S wants to implement SAP SNC then it need to implement VMI scenario.

If Manufacturer M wants to implement SAP SNC then it need to implement SMI scenario.

Note: Both business concepts are same, i.e collaboration between customer and supplier. But the role playing by the implementing organization is different. In case of VMI the implementer plays as Supplier Role .

Hope this will help someone. Please don’t forget to mention your feedback in the comments section.

2 thoughts on “Difference Between SMI and VMI in SAP SNC

  1. srinivas

    Hi Pratyusa,

    Can you please elaborate the difference between SMI and VMI.

    Can you please explain relation between APO and SNC in SCM

    Thanks & Regards

    Srinivas Thummala

    Reply
    1. Praty Post author

      Hey Srinivas,
      I am really sorry I couldn’t reply you back then. Hope I can contribute something now.

      You might have heard about VMI-Vendor managed planning. This is a scenario a supplier(S) plans and replenishes it’s customer’s(C) inventory. Customer(C) only shares it’s inventory and requirement information. Supplier uses it’s own system to plan.

      SMI- Supplier managed Inventory- It’s similar to VMI but with only one difference is that the system used is customer’s (C) instead of supplier using it’s own system.

      Again as I mentioned earlier, the process is very similar. But the impact and user adoption vary a lot due to various parameters.

      For APO Vs SNC please check below blog post-
      http://www.pratyusa.info/difference-between-apo-and-snc/

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*