Business process flow
The supplier prepares a forecast. The forecast will have the maximum quantity by product by season/cycle by store location.
The products are consigned and supplied to the customer as per the agreed forecast.
Customer provides the supplier with the sales figures on a regular basis via a sales interface file. Supplier invoices the customer from the sales data and automatically replenishes the products at the store location to the maximum allowable quantity.
At the end of a cycle, unsold stocks at the customer location are returned to the supplier or written off and disposed by the customer.
On an as needs basis, consigned stocks will be counted and reconciled. Any unfavourable variances will either by invoiced to the customer or written off by the supplier. Favourable variances will be written up by the supplier.
The supplier can enquire on the quantity by product, by location of consigned stocks at any given time.
The supplier can also act as an agent or a consignee for products of another supplier. These third party consigned stocks can in turn be consigned to the customer. When these products are sold by the customer to the end consumer, the supplier will pay the third party supplier for the sold products. The third party supplier can be paid the full sales amount and then a separate invoice can be generated to the third party supplier for commission and fulfillment services.
System process flow
- Create forecast for customer store location with agreed VMI parameters.
- Supply initial stock on consignment to customer store location.
- Email customer stock levels to customer as required
- Adjust/Replenish stock as per delivery details
- Obtain sales interface files from customer
- Invoice customer as per sales data received
- Return or transfer/write off unsold stock
- Finalise season/cycle
