Bosch Supplier Logistics Manual, Release. 3.0
Robert Bosch GmbH, CP/LOG, 07.05.2007 Page 8(35)
The procurement control concepts KANBAN, DCM and VMI,are supported by a web based Inventory
Collaboration Tool provided by the company SupplyOn.
Release Process
Release Orders are transmitted on a rolling basis. They are updated regularly and generally contain
data with a horizon of at least 6 months. The last release order is binding and replaces earlier
releases.
VMI Process (Vendor Managed Inventory)
For Vendor Managed Inventory (VMI) the supplier will receive access to gross demand and the
inventory levels from Bosch for the supplied parts. SUPPLIER is responsible to manage the shipments
to ensure inventory level within the agreed MIN-/ MAX-stock levels (generally consignment stock).
These levels are agreed upon between BOSCH and SUPPLIER.
DCM Process (Delivery Control Monitor)
Similar to the VMI process (Min / max. stocks) but inventory control according to actual consumption.
When the order point the system produces a suggested amount for delivery (e.g. fill up to max).
Dependent on the agreement with the plant this suggested amount for delivery must be delivered in
full or can be modified by supplier related to the agreed Min / max. limits. This control concept is often
used as a interim solution before the introduction of KANBAN (concept used for products with constant
consumption; in many cases several shipments per day).
KANBAN Process
Trigger is the consumption of KANBANs (containers) from supply source near to production
(supermarkets). This steering concept is used mainly for A and B parts with constistant consumption
and is the preferred form of supply within Bosch.
If the KANBAN process is used, additional forecast information will be transmitted as well (forecast
valid for production and material release). The KANBAN order is the binding trigger for the shipment.
1.2.4 EDI Transactions
Suppliers with an EDI connection to BOSCH use delivery call-off/ releases (in case of VMI gross
demands), and advanced shipping notifications (ASN) as the minimum EDI transactions.
