A company that owns the product designs that it sells, and manufactures the products either in its own factory or by outsourcing to Manufacturing Partners (MP).
Manufacturing Partner (MP)
A company that provides manufacturing services, and manufactures assemblies and products for OEMs.
Chargeable Subcontracting
In Chargeable Subcontracting, the Original Equipment Manufacturer (OEM) completely outsources the manufacturing of an assembly to an Manufacturing Partner (MP) and makes a provisional sale of components by invoicing the MP. The OEM retains the ownership of the components even after registering the sale of components. Chargeable subcontracting support is available for Japan, Taiwan, and Korea
Buy/Sell Subcontracting
In Buy/Sell Subcontracting the Original Equipment Manufacturer (OEM) completely outsources the manufacturing of an assembly to a Manufacturing Partner (MP) by buying the assembly from the MP and most importantly, sells the components to the MP that are consumed in the manufacturing of the assembly at the MP's premises. Buy/Sell subcontracting support is available for all countries.
Full Outsourcing
In Full Outsourcing, the Original Equipment Manufacturer (OEM) completely outsources the manufacturing of an assembly to an Manufacturing Partner (MP) and ships the components to the MP but retains the ownership of the components while they are used in the manufacturing of the assembly. The MP makes no payment to buy the components. Full Outsourcing support is available for all countries.
Outsourced Assembly
Assembly item that is designed by the OEM, and outsourced to a MP for manufacturing at the latter's site.
Subcontracting Components
Components sent by the OEM to the MP for the manufacture of outsourced assemblies.
Pre-positioned
Components are shipped to the MP without reference to any subcontracting order ahead of assembly requirements. When the subcontracting order is created, these components are hard allocated.
Synchronized
Components shipped along with the order, to the MP with references to specific subcontracting orders.
Subcontracting Order
Purchase order (or Blanket Release) created by the OEM to procure outsourced assemblies from the MP.
Replenishment PO
Purchase order created for the MP in the Subcontracting process to procure subcontracting components from the OEM. This purchase order is not visible on the Subcontracting Workbench. The PO is also closed for invoicing.
Replenishment SO
Sales order created in the Subcontracting process to ship subcontracting components to the MP.
Allocations
Pegging of replenishment sales orders created in the OEM organizations in accordance with component requirements for the manufacture of outsourced assemblies at the MP site.