Introduction to Subcontracting in Viindoo

Subcontracting is a common operation in manufacturing enterprises. In which, the manufacturer sends some semi-finished products or all the necessary materials to a subcontractor who then takes care of a part or the entire production process. Viindoo All-in-one Enterprise Management Software provides tools to support businesses in managing the subcontract operations efficiently.

This article shows you how to:

  • Activate the Subcontracting feature;

  • Subcontracted product and Bills of materials configuration;

  • Subcontracting workflow.

Requirements

This tutorial requires the installation of the following applications/modules:

Subcontract feature activation

To enable the Subcontract feature, navigate to Manufacturing > Configuration > Settings, check on the Subcontracting feature and Save.

Subcontracting feature activation

Subcontracted product configuration

Configure product categories

First, you need to create product categories for the semi-finished and final products used in this process. Then configure the accounting accounts for these product categories accordingly.

Configure subcontracted products

For these products, activate the Resupply Subcontractor on Order routes.

Route Configuration for resupply subcontractor on Order

When this route is activated, deliveries to send materials from the manufacturer to the subcontractor are automatically generated immediately after the subcontracted products purchase order confirmation.

Bill of Materials configuration

For the Bill of Materials (BoM) of the subcontracted products, you need to select the Subcontracting type and set up one or various subcontractors to produce this BoM. Then add necessary components and materials to the BoM.

BoM configuration for the subcontracting product

Note

Since you do not directly perform the work orders of the subcontracting operations, there’s no need to manage them in the software.

Subcontracting workflow

In Viindoo, the subcontracting workflow consists of the following steps:

  • Step 1: Configure products, bills of materials and respective replenishment routes.

  • Step 2: Create a purchase order to buy the subcontracted products from the subcontractor.

  • Step 3: Process the delivery orders that are waiting in the Inventory app to send materials to subcontractor for production.

  • Step 4: Receive subcontracted products from the subcontractor.

This subcontracting feature can be easily applied in the manufacturing process.