Subcontracting in PP/APO - Fabless

[Former Member]

Hi SAP Gurus,

I am supporting Semiconductor client. So far we have been doing some of the production activities inhouse and some of them were subcontracted. Now we are planning to move to complete subcontracting and doing nothing at the plant location. they call it fabless methodology.

In such a scenario, please advise on what are all the challenges we may face and methodology to apply for modules like APO and PP-PI.

As and when clear cut business requirements are laid out, i may want to reach out to you all on this.

Please share your thougths.

Thanks.

Jagadeesh

[m_manimaran · Accepted solution]

Hi,

Here are my thoughts,

1. You can use PPDS or SNP subcontracting process, if you want to plan the production at Subcontractor location. By using PPDS or SNP, the capacity constraints at the vendor locations can also be planned. For further details, refer the below link.

http://help.sap.com/saphelp_scm50/helpdata/EN/68/f3593b0972fa72e10000000a11402f/frameset.htm

2. If you want to include negotiations in the purchase order, and to track the material consumption/ production, In-transit, ASN- then Work order collaboration scenario with SNC is the best option.

http://help.sap.com/saphelp_scm50/helpdata/en/43/0bdaf1fe6a21ace10000000a1553f6/frameset.htm

Regards,

Manimaran M.