Subcontracting process involves sending raw components to
a subcontractor, or let purchase
component and let vendor directly delivery component to subcontractor for specific manufacturing
processes, and receiving the value-added finished material back into inventory
A subcontract purchase requisition is either generated
via the Material Requirements Planning
(MRP) process or manually by a requestor. A buyer validates the accuracy of the purchase requisition and converts it into
a purchase order. The purchase order is subject
to approval based on predefined parameters prior to being issued to a vendor.
Component can be receipt into your own storage location
or vendor can delivery to your
subcontractor inventory.
The consumption of sent components is recorded upon
receipt of the value-added finished
material. The vendor sends the invoice for the services provided which is paid during the normal payment cycle
High Level Key process flows as below
- Create Demand
- Create Sub Contracting PO
- Deliver Components to
Subcontractor
- Receive Sub Contracted Goods
- Payment to Sub Contractor
Sub
process Overviwe
1.
Purchase order creation based on a scheduled
purchase requisition created by last
2.
MRP
run
3.
Purchase order approval (if required)
4.
Purchase order can delivery directly to
subcontractor side
5.
Outbound
delivery
6.
Goods issue for delivery and shipment (if
required) to subcontractor
7.
On goods receipt, Goods receipt for purchase
order delivered by subcontractor
8.
Invoice receipt by line item and Pay to vendor
