Hello,

I have to deal with the following scenario;

We buy part A from supplier A perform a simple operation on it and send it to supplier B free issue. Supplier B then returns it to us as part B.

We do have a solution which is probably a little too complex to post but has anybody any experience with a scenario similar to this. Subcontracting / third party purchasing ?

Cheers
Neal Matthews
IT Support Analyst
ATY Automotive & Industrial Components (UK) Ltd.

HI,

The best Option will be that you follow Subcontracting Route.
Supplier B Must be charging something for conversion of item from A to B. You can define a routing for subcontracting and then process the subcontracting order.

Regards

Navin Tenani

Hi Navin,

I'll check this out. However one of the complications we have is that we are running Supply Chain using Purchase Schedules. I believe that subcontracting will only generate standard Purchase Orders.

Thanks for the response.

Cheers
Neal

Hi Neal,

I am not very much sure about the Supply Chain.
The Standard POs will be raised for subcontracting Item and For Final Item (B) the system shall be generating Production Orders.

Regards

Navin Tenani

Hello Navin,

Managed to put together a solution whereby we ship part A to supplier B as a manufactured item through the supply chain with a prototype Sales Contract (zero price). This has the advantage of consuming the stock of the purchased item. The only down side is that a zero value invoice is produced but I've set the customer to be self billing so that least these invoices are slightly invisible from an audit point of view.

Cheers
Neal

I have been having the same problems for years originally used subcontracting the solution worked from a technical view but people didn't do the transactions. It is made more complicated that we buy the part then bend it then goes out to a subcontractor then comes back we do somemore work on it then it goes back out to a different subcontractor. It is also all run on Kanban tickets (their drivers pick up and deliver several times a day) so in the end we now have warehouses for each of the sub contractors as they collect the parts a warehouse transfer is made and a text note added to give details on the transaction.The paper work for the driver is generated outside baan. When the parts come back they are booked in as normal and the stock in supplier warehouses are adjusted by the received amount. H

Hello Darren,

3 suppliers sounds complex. One of the advantages I've found with defining Part B (also a bent tube) as a manufactured item is that I can set up a Sales Schedule for it and massage the inbound EDI from the customer to create the Sales Schedule.

Cheers
Neal