Subcontracting
Overview
Subcontracting Module – Business Overview
Business Purpose and Scope
The Subcontracting module in Dafater is designed to manage and control business activities where part of the production or processing work is outsourced to external vendors. It supports organizations that rely on third parties to manufacture, assemble, process, or finish products while still maintaining full visibility over costs, materials, timelines, and accountability.
The scope of this module covers the complete subcontracting lifecycle—from defining what work is outsourced, to issuing materials, receiving finished or semi-finished goods, and tracking vendor performance.
Business Functions Covered
The Subcontracting module supports the following key business functions:
Outsourced Production Management
Manage production activities that are performed by external vendors instead of in-house teams.Material Supply Control
Track raw materials or components sent to subcontractors and ensure they are used correctly.Vendor Coordination and Accountability
Clearly define subcontractor responsibilities, delivery timelines, and output expectations.Cost and Quantity Tracking
Monitor subcontracting costs, material consumption, and output quantities to maintain profitability.
How It Supports Business Operations
The module enables businesses to:
- Maintain control over outsourced work without increasing internal operational complexity
- Reduce production bottlenecks by leveraging external capacity
- Ensure accurate tracking of materials issued to and received from subcontractors
- Improve planning and forecasting by aligning subcontracted work with overall production schedules
- Minimize losses, delays, and disputes through structured documentation and approvals
By standardizing subcontracting workflows, businesses can scale operations while maintaining transparency and control.
Key Features and Capabilities (Business Perspective)
1. Subcontracting BOM
- Defines what materials are provided by the business and what processing is done by the subcontractor
- Clarifies responsibilities between the company and the vendor
- Helps estimate costs, material requirements, and output quantities in advance
2. Subcontracting Order
- Formal business agreement to assign work to a subcontractor
- Specifies quantities, delivery dates, and expected outputs
- Acts as a control document for tracking progress and commitments
3. Subcontracting Receipt
- Confirms receipt of finished or processed goods from the subcontractor
- Ensures that received quantities match expectations
- Supports quality checks and inventory updates
Together, these documents provide a complete and auditable trail of subcontracting activities.
Integration with Other Business Processes
The Subcontracting module works closely with other core business processes in Dafater:
Procurement and Vendor Management
Aligns subcontracting activities with vendor contracts, pricing, and performance tracking.Inventory and Materials Management
Tracks materials issued to subcontractors and finished goods received back into stock.Production and Planning
Integrates subcontracted operations into overall production plans and timelines.Finance and Cost Control
Supports accurate costing of outsourced work for profitability analysis and financial reporting.
Business Value Summary
The Subcontracting module helps businesses:
- Expand production capacity without heavy capital investment
- Maintain control and visibility over outsourced work
- Reduce operational risk and material losses
- Improve vendor collaboration and delivery reliability
Overall, it enables a structured, transparent, and efficient approach to managing subcontracted operations within the broader business ecosystem of Dafater.
Module Name: Subcontracting
Total DocTypes: 3 Total Reports: 0 Total Pages: 0