• Inventory levels (min/max)
• Replenishment frequency
• KPIs and review mechanisms

Buyer shares forecasted demand with the vendor

Based on the delivery schedule, vendor creates a delivery document

• Buyer posts GR and updates inventory
• Ownership may transfer at delivery or consumption

• Vendor reviews consumption and inventory levels
• Vendor ships goods without a PO

• Based on consumption or delivery
• Vendor sends invoice, buyer pays

Buyer posts actual consumption

Updates inventory balances

SAP ECC