Work Order Collaboration – Part 1

Though SAP SNC uses the term Work Order Collaboration repetitively, it actually  describes 2 processes within Outsourced Manufacturing – ‘Subcontracting’ and ‘External Processing’. Lets start by clarifying each term. ‘Subcontracting’ refers to providing components to the supplier for the supplier to manufacture a sub-assembly or a finished good and return it. This process begins with  a subcontracting purchase order. ‘External processing’ refers to a single or multiple operations within a larger production order  being carried out externally. This process begins with a production order.

In both processes, the supplier can confirm back to the buyer the production progress and phase wise completion of operations. In both processes, an ASN can be sent by the supplier to the buyer.

SubContracting

External Processing