SAP TM process for standard subcontracting

[former_member1124846]

Dear TM group,

Has anyone implemented TM process for standard subcontracting for a shipper, i.e. movement of raw materials  / components to subcontracting vendor and return movement of finished goods? A subcontracting PO is created on ECC with finished goods material as main item and components as sub items. We require one freight order from plant to vendor with components and another freight order from vendor to plant with finished material. Since this is standard ECC process, we are assuming there is a standard way to do in TM. Any inputs on how to model this process in TM along with where the cost is typically settled is greatly appreciated.

Best Regards,

KC

[Former Member]

Hi Krishna,

Did you find a solution for your requirement? I have same requirement can you explain how did you model 3rd party sub-contracting process?

3rd Party PO

Outbound1: Components shipping to supplier

Outbound2: Finished product shipping to customer

Thanks,

Venu

[former_member1124846]

Hi Venu,

The business there had two sub-contracting variants.In one of them the subcontracting vendor is modeled as a plant (because of huge inventory, dedicated vendor etc.). So we used an STO to transfer components to the vendor plant (standard TM planned) and a regular sub-contracting PO within the same plant (no transportation) to receive the finished goods. Subsequent shipping used standard sales orders planned in TM.

In the other variant the subcontracting vendor was not modeled as a plant as inventory was not material enough. So we used a standard sub-contract PO that created an OTR for the finished goods with vendor as source location and plant as destination. We used this one to plan inbound transportation. Then we created an outbound delivery for the sub-contracting material (with no PO linkage). Since the PO linkage was missing TM created a DTR without consuming the OTR. Source is plant and destination is vendor because it's how outbound delivery works. We used this for outbound transportation for components.

Though SAP TM team said subcontracting is not supported out-of-the-box (as of 9.1 at least), it can be done in the above way as long as you can manage the cockpits, user training etc. so it gets the look & feel of a clean process.

Best Regards,

KC

[Former Member]

Hi KC,

Thanks for the prompt reply. For sub-contracting PO outbound delivery is it out-of-the-box solution if you are in TM 9.3?

Thanks,

Venu

[LinglingQian]

Hello Venu,

How did you deal with this matter? Now we are in the same situation.Can you tell me how to handle it？

Thanks,

Lingling