Manufacturing-Subcontracting

We have a client who is a manufacturing outfit. They have a model wherein they outsource 90% of their manufacturing process ( i.e finished products ), the spares are normally given by the client to their outsourcing vendors. The client out of their line of 20 products, manufactures only 1 product inhouse. Will navision attain be a good choice as an erp to handle their business process for Purchase, Sales, Store, Mfg, Warehousing and Accounts/finance. My understanding is that the subcontracting section of MS Nav. Attain is not a very explicit module. Please throw some light on the same, as the client doesn’t have very high budgets for their Buss. Solution.

The manufacturing modulescan be quite expensive depending upon th efull requirements, they are of course complicated and as with all modules and granules the need is dictated by the requirements of the customer. Sub-contracting can be handled through the use of a sub-contracting work-centre where goods are shipped out as part of the routing and worked upon and then returned either to stock or for further operations. It is not possible for me to tell you if

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Will navision attain be a good choice as an erp to handle their business process for Purchase, Sales, Store, Mfg, Warehousing and Accounts/finance


But on what you have told me it will be as good as any if not better. It is also not possile for me to tell you whether or not Navision will handle the sub-contracting requirements of the business (for instance is the customer required to purchase/track the spares provided by the client), but I can say Navision “handles sub-contracting”. I will say that if you are restricted heavily by budget it is highly unlikely the customers needs will be met by any product with the depth of functionality required, but Navision would be a good choice if they wanted to modify something “out-of-the-box”. Too little information has been provided to pass true judgement but I have enough confidence to say Navision would do a “job” for them. Depending on budget, the customers expectations and the implementation skills this could either be a bad job, an okay job or an excellent job. [:D] Have fun

thank you steven for your reply. Since you have mentioned : “Sub-contracting can be handled through the use of a sub-contracting work-centre where goods are shipped out as part of the routing and worked upon and then returned either to stock or for further operations.” In the actual functioning the stock doesn’t actually come to the stores, does that mean that we only stimulate or is there away to make vendor process as a ROUTING procedure.

Hi Jasvir Do you mean it is shipped directly to the customer from the subcontracotrs? If so the final routing of the production order could be the sub-contracting worksheet and this will put it into stock, however depending upon the process you may work in a MTO environment and if the production and sales orders are linked then the quantity to ship is automatically populated. I presume because of the costing implications and the extra work it is deemed a sub-contract process whereby the user pays for the work of the assembly, rather than a drop shipment creation? I think without knowing the full requirements that you would need to modify the finialised production to ship direct to the customer, but if you are in a true MTO environment then the current methodology may only need tweaking to auto ship (or invoice) the sales order at the end of produciton. I hope this helps.

thanks steven - the insight was really helpful. I have more or less understood the details . I might post some more details as the project progresses, thanks again