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Sometimes we need our subcontractor to manufacture multiple levels of BoMs for us.

Here is how we could do it!

Avatar
Buang

Hi,
I have a product that I need to manufacture (roasted coffee) send to subcontractor, they create Cans of Coffee, and then send back to us. I followed you video but it does not show how to send the coffee (outgoing transfer for the MO. It does not create the MO either, it just creates the PO for the finished Product. So i am confused why the MO was not created?

I think i have an issue with the BOM. I have it set to subcontracting, but I have two componets, one is the Can production and one is the product we manufacture here, but I do not think it is correct.

Penulis Jawaban Terbai

1. Create your BoMs structure: either manufacture this product, or subcontract. (for example: one in manufacture, two in subcontract with your partner as the subcontractor).

2. Create a new operation type such as this one: 


3. Create a new route such as this one:


4. Configure your products' routes like this: 

- Level 1: Manufacture & Replenish on Order (MTO)

- Level 2: Buy & Replenish on Order (MTO) (with the subcontractor correctly listed in the purchase tab) 

- Level 3: subcontractor correctly listed in the purchase tab with a reordering rule such as this one:


Here is a small summary of the configuration & the flow: 

https://drive.google.com/file/d/1CpvOF8biTXMd991VF6wWzT_xayzRVDCf/view?usp=sharing

Avatar
Buang
Jawaban Terbai

Thanks for this interesting scenario.

Although the fact that it creates a subsequent RFQ for the level3 product creates quite some extra 'paperwork' (even if it is paperless)

It would be cool if that step could be skipped ... but yet the stock at the subcontractor to be reduced.

I have tried a bunch approached but cant figure it out.

Avatar
Buang
Penulis

Hello Jaco, indeed having to validate two purchase orders is heavy.
However, you could consider the first level to be the one with the price, and the second could be considered as just the expression of the need to the subcontractor: you tell them that they have to manufacture this level of the BoM.
We're trying to figure out how we can skip this step and if we find something, we'll let you know!

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