Inventory

Suppliers are required to participate in SMI (Supplier Managed Inventory) at a defined location. Typically suppliers are asked to hold up to 10 days of product at a warehouse location (managed by a third party). Sensata will pull from this warehouse and initiate a receipt transaction. Terms of payment for suppliers participating in SMI is improved from 60 days to 45 days.

It will be the responsibility of the suppliers (not participating in SMI) to hold authorized stock in their facility for immediate shipment as requested and maintain FIFO practices by shipping out of this inventory to meet Sensata orders and replenishing this inventory as new product is built. The authorized stock quantity by part number should be a minimum of 2 weeks.