Safety stock issue due to supplier delay

[Varatha_sap]

Hello experts, 

Currently we have set up master data with proper safety stock, reorder point, planned delivery time for our business scenario. MRP triggers purchase requisition if there is any shortfall. 

The problem is supplier does not fullfil the demand on time (there are cases delay with one or two months of time period).

To tackle this currently we are storing three months of addition inventory in stock (in addition to safety stock).

Is there a better approach or better planning process we can handle this situation?

Thanks 

Varatha

[Lakshmipathi]

Here you need to take into consideration why the vendor is not able to deliver the products as committed.  If the vendor dont have proper planning or capacity to produce the ordered components, then, your client has to reconsider to go with an alternate vendor who can supply on time.  Of course, the realistic delays can be addressed with some work arounds but not for the vendor's inability to supply

[Varatha_sap]

Hi lakshmipathi,

I completely agree with you. But customer does not want to change the vendor as they are working with them for over a decade and they looking for a possibility to handle in SAP instead of vendor reconsideration or evaluation. 

If there any measure that can be a possible one to do so.

Thanks

Varatha