Subcontracting
Manage outsourced manufacturing
The MRP Subcontracting module enables you to outsource manufacturing operations to external subcontractors. When you purchase a subcontracted product, the system automatically manages component resupply to the subcontractor and tracks the manufacturing process performed by them.
Subcontracting Flow
Key points
• Purchase Order: Create a PO for a subcontracted product
• Component Resupply: System automatically sends required components to subcontractor
• Manufacturing: Subcontractor produces the finished product
• Receipt: Receive finished goods and consume components automatically
Subcontractor Location
Each subcontractor has a dedicated virtual location where components are stored. This location is automatically created per company and can be customized per partner.
Setting Up a Subcontracted Product
Steps
1. Go to Manufacturing → Products → Bills of Materials.
2. Create a new BoM.
3. Set BoM Type to "Subcontracting".
4. Add component lines (materials needed).
5. Select one or more Subcontractors.
Configure the Product
Key points
• The product must have a subcontract-type BoM
• Add the subcontractor as a vendor in the Purchase tab
• Set appropriate lead times
Warehouse Settings
Steps
1. Go to Inventory → Configuration → Warehouses.
2. Enable "Resupply Subcontractors" option.
3. This creates automatic resupply routes.
Partner Configuration
For each subcontractor partner.
Key points
• Set them as a Vendor
• Optionally configure a custom "Subcontractor Location"
• Add them to relevant subcontract BoMs
Creating a Subcontract Order
Steps
1. Create a PO for the subcontracted product.
2. Select the subcontractor as vendor.
3. Confirm the order.
Automatic Actions
Key points
• System creates a Manufacturing Order linked to the receipt
• Resupply picking is generated to send components
• Components are reserved from stock
Component Resupply
Steps
1. Go to Inventory and process the resupply transfer.
2. Send components to the subcontractor location.
3. Validate the transfer.
Receiving Subcontracted Products
Steps
1. Open the receipt from the PO.
2. Click "Subcontracting Details" to view the MO.
3. For tracked products, specify lot/serial numbers.
4. Validate the receipt.
Automatic Consumption
Key points
• Components are consumed automatically
• Manufacturing Order is marked as done
• Finished product enters stock
Tracked Products (Lot/Serial)
For products with lot or serial tracking.
Steps
1. During Receipt, click "Subcontracting Details".
2. Assign lot/serial numbers to finished products.
3. System creates one MO per lot/serial.
Component Tracking
Key points
• Specify which component lots were used
• Track full traceability from components to finished goods
Portal Access for Subcontractors
Subcontractors with portal access can.
Key points
• View Their Productions at /my/productions
• See all subcontract orders assigned to them
• Filter by status (All, Done, Ready)
Update Production Details
Key points
• Record component consumption
• Update lot/serial numbers
• Mark operations as complete
Limited Access
Key points
• Can only see their own orders
• Cannot modify critical fields
• Read-only access to most data
BoM Structure Report
The BoM structure report shows.
Key points
• Subcontracting costs per unit
• Component requirements
• Lead times including subcontractor delays
• Stock availability at subcontractor location
Traceability
Full traceability is maintained.
Key points
• Component lots used in production
• Finished product lots produced
• Subcontractor and date information
• Complete audit trail
Standard Subcontracting
Steps
1. Create PO for subcontracted product.
2. Validate resupply transfer (send components).
3. Receive finished goods.
4. System auto-consumes components.
Return to Subcontractor
If you need to return defective products.
Steps
1. Use the Return function on the receipt.
2. System returns to subcontractor location.
3. Components remain consumed.
4. Create new PO for replacement.
Changing Quantities
If the subcontractor produces different quantities.
Steps
1. Open the Manufacturing Order.
2. Adjust the quantity.
3. System recalculates component needs.
4. Update the receipt accordingly.
Best Practices
Key points
• Component Availability: Ensure components are in stock before confirming POs
• Lead Times: Set realistic lead times on vendor records
• Quality Control: Inspect received goods before validating
• Communication: Use portal access to keep subcontractors informed
• Lot Tracking: Always track lots for critical components
• Regular Reconciliation: Check subcontractor location stock periodically
Components Not Reserved
Key points
• Check warehouse resupply settings
• Verify component availability in stock
• Ensure routes are properly configured
Cannot Validate Receipt
Key points
• Check if all required lots/serials are assigned
• Verify Manufacturing Order is not cancelled
• Ensure sufficient component quantities
Subcontractor Cannot Access Portal
Key points
• Verify user has portal access
• Check partner is listed in BoM subcontractors
• Confirm productions exist for that partner
Integration with Other Modules
Key points
• Purchase: Automatic PO to subcontract flow
• Inventory: Component resupply and stock management
• Quality: Quality checks on received goods
• Accounting: Subcontracting costs in product valuation
• Portal: Subcontractor collaboration interface