In-house/Supplier managed inventory

Typically if a manufacturer needs a product, they place an order with a supplier. The manufacturer is in total control of the timing and size of the order being placed and maintains the inventory plan.

With Supplier Managed Inventory (SMI) the supplier receives electronic data that informs him of the manufacturer stock levels. The supplier is responsible for creating and maintaining the inventory plan.

Under SMI, the supplier generates the shipment for the replenishment, not the manufacturer. SMI does not change the "ownership" of the inventory. It remains as it did prior to SMI.

If SMI is combined with consignment stock the ownership of the stored material at the manufacturer location goes over to the supplier. The manufacturer only pays by consumpion.

SMI is always based on cooperation between supplier and manufacturer. It must be considered as one component of a demand driven supply chain. SMI is always used at the inbound side of a supplychain and eliminates routine, repetitive purchasing activities for both the manufacturer and the supplier.

The motivating factors for both partners to run a SMI business model are:

	More transparent processes along the supply chain
	Reduction of inventory to lower the employed capital
	Reduction of safety stock, higher availability with less risk
	Better forecasting and demand planning
	Better control of upstream process in production- and inventory managment
	Early detection of delivery shortage, minimization of delivery fluctuation
	Better utilization of resources, avoid spikes in production and distribution
	Less disturbance of processes through changes in orders
	Improved customer relationship due to highly intergrated logisitcal processes
	Less Process costs due to elimination of :
	Material Planning and Disposition
	Order processing and tracking
	Inventory Monitoring and -management

With SupplyCare^® Enterprise we provide our customers with the necessary information systems and tools beyond the required hardware solutions in the field to run a business model like SMI. Whereas our measuring devices are the point of action creating the required information, Fieldgate is a web based data access system which provides the information to the system. SupplyCare^® Enterprise is the subsequent step bringing business intelligence to the entire solution. With SupplyCare^® Enterprise, we enable manufacturers to make their supplier responsible for the replenishment process. This results in an overall increase of their productivity and has a direct influence on the Return on Capital Employed.

SupplyCare^® Enterprise collects data and presents them via Internet browser, no additional software required. Common standard protocols like CIDX (Chemical Industry Data Exchange) allow further intergration into ERP software like e.g. SAP^®.

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The overall offering in the Field of SMI / Inhouse applications includes:

	Measurement instrumentation
	System components
	Data integration into ERP systems
	Customer support for all system related issues
	Field, application and technical support

Fieldgates provide world-wide remote monitoring, remote diagnosis and remote configuration of HART^® and PROFIBUS^® sensors via Ethernet TCP/IP, telephone lines (analogue) or mobile communications (GSM). Measured values become available world-wide via the Internet and can be analysed in a standard web browser without additional software.

	Fieldgate FXA320 (4…20 mA)
	Fieldgate FXA520 (HART)
	Fieldgate FXA720 (PROFIBUS)

Download supplementary ducumentation:

SupplyCare Enterprise SCE30

Software solution - online inventory data for

material management and logistics

Innovation brochure

IN004S/04/en/05.07

Inventory Control

Transparency in your bulk inventory to optimise

your business operations

Field of Activities

FA003V/00/en/04.04