Overview
This scenario has different alternatives: You can initiate the subcontract manufacturing scenario from any production scenario as well as from a sales order. The required raw materials and components are provided to the subcontractor by the company in accordance with the BOM and route sheets. Manufactured products are delivered to the company's warehouse. Contracts with subcontractors usually include the terms of regular issue of notifications of available raw materials and components, physical inventory count results, and products manufactured during the reporting period.
The subcontract manufacturing scenario covers the process flow that relates to procurement of external manufacturing services that requires transfer of raw materials and components to the vendor and receipt of a finished product (work performed).
Subcontract manufacturing flowchart
- a process group the process belongs to
- a typical business process
- a typical E2E business process scenario
- a typical E2E business process cluster
Links to User Guide
- Generate subcontracting purchase orders based on production stages
- Define delivery terms
- Control material availability for production
- Generate demand-driven subcontracting purchase orders
- Control goods availability for supply from stock
- Confirm subcontracting purchase orders and send to vendors
- Follow up material supply and initiate shipment
- Fill up customer stock
- Perform manufacturing by external subcontractor
- Pick up products from subcontractors
- Register subcontractor notifications of consumed resources
- Process vendor invoices for subcontracting services
- Process vendor invoices for one-off services and assets
- Issue customer invoices for redeemed stock