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Nov 14, 2012 at 09:26 PM

Subcontracting stock

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Dear all,

In our subcontracting process, we have some of our components places in our vendor’s ware house.

- Components A, B & C are sent to the vendor. Vendor delivers semi-finished item D

- Large quantity of component A is located in vendor’s stock for practical purpose (consignment?)

- We would like to include component A in all our subcontracting purchase orders sent to vendor.

I don’t know if this is called a consignment stock. Please guide me how this process is managed? Also how to mange stock movement for component A in our vendors stock?

Thanks in advance