Purchase process

Hi All ,

Scenario is, a Manufacturing company has Submitted Purchase order to vendor 1 for some raw materials and that vendor is sending these Raw materials to vendor 2 for machining work and then vendor 2 is sending these semi finished goods to company .How to Map this Cycle?

Create a warehouse for vendor 2 to load the purchase order on. Create a sub-contract production relationshipto get the work done at vendor 1 with a related purchase order for the service. Load the production order this will tell you to create the production order pulling the information from the vendor 2 warehouse which in turn creates the demand and tells you to purchase it into the warehouse. Have you looked at sub-contracting, if not you need to do so.