3rd party repack solution

[Former Member]

Hi,

We have a business scenario for which we are trying to find a process solution. I am wondering if any one worked with a similar scenario or share ideas on how to accomplish the process.

1. We have materials A, B and C that we manufacture at plant and deploy to DC from where they are shipped to customers.

This is the main stream of the business.

2. We take some of these materials, as per a BOM, 2 cases of A, 3 cases B and 1case of C and make another material named D. We really take out the A, B,C from their packaging and put all of them in one big case and package it.

3. This repack happens at a 3rd party location that takes A,B and C from the DC. The completed material D is then shipped directly to the customer.

4. We need to track inventory and do reporting on the A,B,C and D consuemd/made at the 3rd party location.

has any one worked with this kind of case? Any ideas for setting up the process are welcome.

Thanks.

[Former Member · Accepted solution]

Hi Rajgaddam,

A standard subcontracting scenario should do the work for you.

Regards

Julien

[Former Member · Accepted solution]

Hi Julien,

Please correct me if I am wrong, as per my knowledge, In sub contracting, we send the components to 3rd party and they make it or package it and ship the company back but in this case, the finished product D does not come back to the company. It is shipped directly from the 3rd party.

It's a mix of subcontracting and 3rd party. That's what makes it complicated.

If you think I am missing some thing here, I would appreciate if you can refer to some kind of link to documentation.

Thanks a lot for the quick reply.

[Former Member · Accepted solution]

Hi,

Sorry I miss this point... (the most important in you question I guess...)

However, even though you do not bring the good to your DC, you still own it isn't it?

If yes what I suggest is to have 2 locations for your 3rd party:

The first will be the standard subcontracting location, the second will be a DC.

Both will have same addresses.

Your process will then be:

1. Move A, B and C from your DC to the new 3P DC. (STO)

2. Use the new 3P DC as a basis location for your subcontracting.

3. Ship to your customer from the new 3P DC

Does it makes sense?

I am personnally not aware of other solution, involving direct shipment... If somebody is I am interesting!

Thanks and Regards

Julien

[Former Member]

Hi rajgaddam,

You should use a dummy DC.

Your network will look like this:

Raw material Network:

"Real DC" -> "Dummy DC"- -> Subcontractor

FG Network:

Customer<- - -"Dummy DC"<- - Subcontractor

-> Haulage

- -> Standard Subcontracting

- - -> Sales

Edited by: Alper Myumyun on Sep 17, 2009 7:01 PM

Edited by: Alper Myumyun on Sep 17, 2009 7:02 PM

[Former Member]

Direct shipments from a subcontractor is supposed to be feasible with ECC 60 Enh 4.

But I have not tried it yet.

Ken Snyder