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BOM Child Demand Reporting

Hello,

We order BOMs from a sub-contractor. These are made up of child parts brought in from various suppliers which are then sent to our sub-contractor for packing. We need to ensure the sub-contractor (which is set up as a location) has all the parts to produce the BOM before we send our PO.

Currently we run SOH reports and correlate the inventory levels in to Excel. We are then able to check if part a + b + c + d is available to produce the BOM. We then manually raise a PO to the sub-contractor for packaging.

I would like to automate this process as much as possible. The idea I have is allow the system to automatically raise POs for the BOMs and have a report that will give me exceptions showing which BOMs do not have SOH at the sub-contractor to be produced. Then I can either edit the generated PO or organise back orders for child parts.

Hope this makes sense.

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2 Answers

  • Apr 12 at 06:46 PM

    Hi Nick

    I like the idea to set up the subcontractor as an MRP Area, since you have better options for MRP planning and besides that, this is the default solution for subcontracting in MRP.

    In this case, you would run MRP for your subcontracting MRP area and the number of replenishment proposals created by MRP would tell you how much stock is missing. You can also use third-party processing, where goods are delivered directly to your vendor.


    Regards,

    Caetano

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  • Jul 19 at 09:28 PM

    Thanks Caetano.

    Currently we create the subcon PO in me21n then create a OBD delivery to the subcon thru me2o. Is there a way to report stock shortages from the plant and on the subcon location?

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