Delivery Schedules – Differences in Sourcing Models (Continental)
Delivery Schedules Models, in general, have no difference in the EDI message type and within the format (e.g. EDIFACT or VDA). However, Supplier understands that quantities cited in Delivery Schedule for VMI are ‘gross requirements’ whereas to ‘net requirements’ in case of CMI consignment process, JIT or ship-to-stock. Net requirements for a Contract Product are derived as a result of applying gross requirements against current stock level, scheduled receipts, and safety stock (netting of gross requirements). Net requirements are lot-sized and offset with planning logics. Gross requirements are the total demand before netting of stock, scheduled receipts and have undergone no lot-sizing or other inventory planning logics.
Find the main differences (Sourcing Model – Communicated Message Type – Details) below:
Ship-to-Stock – Delivery Schedule
The Delivery Schedule received by Supplier for ship-to-stock parts is binding on Supplier and Supplier has to adhere to the dates (+/-1day) and quantities, rather than being merely interpreted as forecast. For this Continental sets appropriate parameters and planning logics in its ERP-System to plan resupply. Quantities cited in Delivery Schedule and their due dates are based on ‘net requirements’.
JIT – Delivery Schedule Call-off
Supplier receives a Delivery Schedule, which Supplier should use merely for planning purpose. Additionally Supplier receives a call-off, which replaces the Delivery Schedule for a limited period of time as agreed mutually and in good faith with the ordering Continental location.
The call-off is decisive for delivery and takes precedence.
CMI – Delivery Schedule Inventory Report
CMI is a consignment process in which Continental as the Customer manages the material planning in terms of restocking and the Supplier has to supply Continental as indicated in the Delivery Schedule. However, as Supplier receives additional information on consignment stock levels and movement reports Supplier has more flexibility in arranging shipments. E.g., Supplier can deliver ten days early as the Contract Products are stored in the consignment warehouse and will get a 100% evaluation for its delivery capability. Quantities cited in Delivery Schedule and their due dates are based on ‘net requirements’.
VMI – Delivery Schedule Inventory Report
With VMI, Supplier shall interpret the Delivery Schedule as merely forecast information and non-binding on Continental. Supplier assumes complete responsibility for resupply for defined Contract Products and receives the Delivery Schedule along with daily or weekly Inventory Reports containing information about the stock level and withdrawals. Based on this information, Supplier has to ensure resupply in accordance with the agreed upper and lower range of coverage in calendar days (these limits are not transmitted in an EDI message). Supplier understands, that current and forecasted demands in Delivery Schedules are ‘production demand’, which are also referred to as ‘gross requirements’.