The Supplier Managed Inventory (SMI) process is a supplier-driven replenishment and planning process. With the SMI module, suppliers view and manage inventory levels, shipping as needed to maintain the ideal inventory level at the customer site. SMI reduces the customer's responsibility to monitor inventory and the need to fax or call the supplier.

The SMI module is fully integrated into the application. It can be mixed with the existing production part replenishment processes (Material Release, Shipping Schedule, Purchase Orders and Kanban). Customers can elect to use SMI for all production parts or only a portion of them. If a part is established as an SMI part, shipping is based on inventory level not any corresponding release or purchase order.

If using SMI, the customer must routinely send (import) the on hand quantity for each SMI part to maintain an accurate representation of the inventory level as parts are consumed during manufacturing.

A variety of SMI tools are provided to help suppliers plan and ship and to help customers oversee supplier performance. Specifically, the SMI Console, available to both buyers and suppliers, provides a snapshot of current inventory levels. Color-coded images visually indicate inventory level and how it compares to maximum and minimum levels defined by the customer. The Part Usage tracks the history of sent parts and the Part Summary shows averages that are useful for planning. For customers, the SMI History tracks inventory over time and displays the data as graphs.