Sub-contract assemblies with free issue

Version Relevance: All versions

Issue: We often order the same assemblies from different sub-contractors, and may even build them in house. Each sub-contractor may be able to supply different parts of the kit, so the free-issue material we supply can vary. What is the best way to approach this?

Nov 4th, 2002

Feedback: We suggest:

  1. You make the BoM for the full in-house manufactured kit and make the parent an outwork assembly.
  2. When you raise the PO you have one line item for the parent outwork kit, and then add further line items for any material/assemblies that they may be supplying.
  3. When you send them (issue) your material you issue the kit but ONLY those items that you are supplying. You leave the items in the kit that they are supplying as shortages on the system.
  4. When you receive the product (along with batch information for the material they have supplied) you receive the line items on the PO that are for the material they have supplied and THEN issue the shortage items in the kit so that the kit is fully satisfied.
  5. You then can receive the parent and the order is complete.
  6. If you are making it in-house you of course just raise a WO as usual.

The advantage of this is that all movements retain batch traceability in full. The system retains the flexibility of outwork and in-house and the outwork can be achieved with different subcontractors that may have different constituent materials to supply. You may want to experiment with this a bit to get the procedures right.

Paul Wilson - Caliach Consultant