Flexible MRP flows, procure semi-finish material from subcontract or manufacture or purchase

Most manufacturing companies outsource some part of the job contracting work to other manufacturing companies to get the best expertise methodology and resource to produce the world class product (i.e Most reputed companies smart phones are assembled in China is the best example of the subcontracting)

In this document we will show you steps to setup the subcontracting business flow, Issue the raw material to your contractor and get the semi-finished product which will be consumed later to prepare the final product in our factory.

Let’s take an example of Table, to produce the table we need 1 table top and table frame, 4 lags and some consumable like bracket and bolt, assumed that table is laminated by third party contractor where we supply wood sheet and lamination sheet to prepare the laminated table top.