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Limited SLOC Capacity, Stock put in Vendor's Place, Need a SLOC for it?

Dear all

There is this situation where we need to create a Vendor SLOC to be used for the following reason:

1. There is limited warehouse capacity on buyer side and buyer will inform vendor to send in 20% of the

stock and vendor will temporary keep the 80% of the stock.

2. And upon GR of 20%, some vendors will ask for full payment for 100% of stock, plus the inventory

storing cost. For vendor that is generous, invoice will be done based on the actual GR done rather

than having us to pay for the stocks still holding in vendor warehouse.


How do we handle this situation in SAP? (It is definitely not Vendor Consignment Stock). Do I really need to create a Storage Location for vendor of this type just to monitor the quantity and value of stock put at vendor side? If need so, I believe I will need to create a lot of SLOC for each vendor that help me to hold the stock due to the limited capacity issue on my site.

Please advise.

Former Member

Try VMI - Vendor Managed Inventory

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