How to Subcontract Manufacturing Efficiently

Odoo Partner
October 21, 2019 by
How to Subcontract Manufacturing Efficiently
Ali Atwi
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Most of the manufacturing companies out there in the world are working with subcontractors. It can help them to save time, effort, and resources with getting work done if your manufacturing company doesn't have the resources or technologies to produce something needed for an end product internally. If you can get that done from a subcontractor for an affordable price tag, you will be able to take a look at subcontracting. The impressive nature of this concept has contributed a lot to its popularity among manufacturing companies.

Once you handover the subcontracting work, you will be able to get back the finished product. This comes along with a variety of benefits, as well. Flexibility is the most prominent benefit out of them. You will be able to get the work done from a service provider, who has the better able to get it done. This can provide you with a better chance to focus on what you specialize in.
As a manufacturing company, you are looking forward to reducing your labor costs as much as possible. When you reduce the labor costs, you are provided with the opportunity to take better advantage out of revenues. In other words, it can help you to boost your revenues. Another key benefit associated with subcontracting is that you will have to move forward with limited capital investments. Along with that, you can save your capital for spending on better investments.
While you are focusing on your core business, you should make sure that you are not getting distracted. You need to stick to what you are good at doing at all times. Then you will be able to experience a variety of benefits. You will be able to play a dominating role in the industry by focusing on your core business, as well. 

How can Odoo ERP help you with subcontracting? 
Now you have a better understanding of all the right reasons available for the manufacturing companies to think about subcontracting. If you are working for a manufacturing company, you can take a look at it as well. However, you should also get to know about the most efficient method available out there to receive the best results with subcontracting. That's where you need to take a look at Odoo ERP.
Odoo ERP provides you with unique subcontracting functionality. This functionality can provide all the assistance that you will need to manage the subcontracting related situations. While you are subcontracting your products, it is essential to clearly define the products that you are outsourcing and the subcontractors who are working on them. You will be working with multiple subcontractors simultaneously, and you will need to manage all of them at once.
In the meantime, you will need to track the stock level of all the subcontractors as well. This can help you to make sure that subcontractors who work for you would never run out of stock. This can help the subcontractors to keep on working for you. In the meantime, you should also make sure that subcontractors are offering their products to you on time, so that you can move forward with the rest of the manufacturing process. In other words, you will be able to streamline all your activities with the help of Odoo ERP. You will be able to get all the products from the subcontractors while ensuring maximum traceability. This functionality is offered to you by Odoo ERP. All you have to do is to go ahead and get the ERP implemented in your business.
Odoo ERP has got all the functionalities needed to help you with different stages of subcontracting. Here's a list of some of the most prominent features out of them. When you go through these different stages, you will be able to get a better understanding of how Odoo ERP can iron out the process and make life easy for you. 

-         Setting up inventory
You can set up inventory for each subcontractor easily with the help of Odoo ERP.

-         Creating warehouse
The warehouses of your subcontractors can be managed via Odoo ERP, as well. Then you will be able to track the processing of all the outsourced orders effectively.

-         Creating material route
Odoo ERP provides your manufacturing company with the ability to create a well-defined material route. It can help you with streamlining the overall subcontracting process with ease.

-         Product tracking
No matter how many subcontractors are working with your company, you will be able to track them all with the support and assistance offered by Odoo ERP. You will be able to monitor the order routes clearly with Odoo ERP.

-         Bill of material
You can define a "bill of material" for your products with Odoo ERP. Along with that, you will have an estimate of the cost of work that you had to go through,  as well.

-         Reorder rules
All the reorder rules will be defined within Odoo ERP, according to the preferences of the business. The overall process is fully automated and managed within Odoo ERP.

Get your Odoo ERP implementation today with ERP Cloud LLC

As you can see, manufacturing companies that subcontract work will be able to receive a lot of benefits through the assistance offered by Odoo ERP. It can provide you with the chance to go ahead and explore all the unique benefits that come along with subcontracting. On the other hand, it can help you to create excellent processes for subcontracting and make life easy for all employees.
 You should first customize and configure Odoo ERP according to your business so that you will be able to streamline the subcontracting work like this. That's where you can think about getting in touch with the ERP cloud. They will help and support you throughout the process of subcontracting via Odoo ERP. 

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How to Subcontract Manufacturing Efficiently
Ali Atwi October 21, 2019
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