Introduction to Subcontracting in Viindoo¶
Subcontracting is a common operation in manufacturing enterprises. In which, the manufacturer sends portion or the entirety of necessary materials (which can be raw materials or semi-finished products) to a subcontractor who then takes care of a part or all of the manufacturing 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 Subcontract feature;
Configure Subcontracted product and Bills of materials;
Steps in the Subcontract process.
Subcontract feature activation¶
To enable the Subcontract feature, navigate to Manufacturing > Configuration > Settings, check on the Subcontracting feature and click Save button.
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¶
On the Inventory tab of the products involved in the subcontracting process (including the materials or semi-finished products to be sent for subcontractor), activate the Resupply Subcontractor on Order routes.
After this route is activated, Delivery Orders for sending materials will be automatically generated immediately when the manufacturer confirms the purchase order with the subcontractor.
Tip
You can also activate additional replenishment routes (make to order supply, supply based on minimum/maximum stock rule) to automatically generate subcontracting orders for subcontracted products when there is a demand from the manufacturer.
Bill of Materials configuration¶
For the Bill of Materials (BoM) of the subcontracted products, you need to select the BoM Type as Subcontracting and set up one or various subcontractors to produce this BoM. Then add necessary components and materials to the BoM.
Note
Since your business does not directly produce the subcontract products, there’s no need to track these production operations. Therefore, the system will not generate manufacturing orders for subcontracted products in the software.
The Materials configured in the Bill of Materials (BoM) will be the materials that your business will send to the subcontractor, without concerning the additional materials the subcontractor may require for production of the subcontracted finished goods.
Subcontracting process¶
In Viindoo software, to supply subcontracted products, the business needs to follow the following steps:
Step 1: Create a purchase order to buy the subcontracted products from the subcontractor.
Step 2: Process the Delivery Orders to send materials from the business to the subcontractor (if necessary).
Step 3: Process the Receipt Orders to receive subcontracted products from the subcontractor to business’s warehouse.
This subcontracting feature can be easily applied in the manufacturing process.