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Former Member
Oct 17, 2011 at 02:41 PM

Monitoring stock at Third-party Manufacturers



We provide our third-party manufacturers with stock such as packaging. As such we keep stock at their warehouses as well as some safety stock at our own warehouses. However we are finding it difficult to keep track of their use of our packaging material.When we place a purchase order with them, we discover that they do not have any packaging supplies and have to air-freight packaging to them at a great cost.

How can we use SAP B1 to help us with this?

Should we keep track of packaging at all our Third-Party Manufacturers by creating packaging Item Masters and monitoring their levels at different warehouses?

Do we create a Bill of Materials which includes the packaging materials which would automatically issue stock from their warehouses?

Do we issue a Purchase Order or a Production Order in this instance? In the past we only issue Purchase Orders to them. It seems an overkill to issue a Production Order to keep track of just the packaging at a Third-Party Warehouse?

Any help to address this issue would be much appreciated.

thank you,