Contract Manufacturing Integration in Procurement

When contract manufacturing is enabled, you can process procurement transactions for contract manufacturing service items.

Important aspects of contract manufacturing integration in procurement transactions include the following:

How procurement fits into the contract manufacturing flow.
How the request to purchasing is transmitted.
What contract manufacturing details are provided in requisitions.
What contract manufacturing details are provided in purchase orders.

Procurement Role in Contract Manufacturing

Procurement of contract manufacturing service items is supported in plan-to-produce, and back-to-back order fulfillment flows. The general flow is summarized as follows:

Oracle Fusion Supply Chain Orchestration calls the Purchase Request Web Service to send a request to Oracle Fusion Cloud Procurement for a contract manufacturing service item.
The Purchase Request Web Service accepts the request to create an externally managed requisition for the item.
A purchase order (PO) is generated from the requisition, either automatically or manually.
The PO, along with the work definition as an attachment, is communicated to the contract manufacturer (CM).

Contract Manufacturing Details in Requisitions

You can't see the externally managed, contract manufacturing requisition in Oracle Self Service Procurement. You can see the requisition information in Oracle Purchasing, if the requisition isn't automatically converted into a PO. You can search for contract manufacturing requisitions requiring manual processing on the Process Requisitions page. Product and Work Order are available for use as a search criteria. When you review contract manufacturing requisitions, in addition to the usual requisition information you can also see these details:

Line Type is Goods.
Destination Type is Inventory.
Organization is the contract manufacturing organization.
Item is the contract manufacturing service item.
Item Description on the requisition line includes an information icon with display-text stating, "This is a contract manufacturing transaction."
Information icon opens a dialog that displays the Product and Work Order information.

You can also use the View Requisition Lines page to view contract manufacturing requisition details.

Contract Manufacturing Details in Purchase Orders

In the PO general header information, you can see the following contract manufacturing details:

Supplier is the contract manufacturer.
Supplier Site is the contract manufacturer's location.

In the PO line information, you can see the following contract manufacturing details:

Line Type is Goods.
Destination Type is Inventory.
Item is the contract manufacturing service item.
Description includes an information icon with display-text stating, "This is a contract manufacturing transaction."
Information icon opens a dialog displaying the Product and Work Order number.
Organization is the contract manufacturer's production facility.
The work definition document is an attachment to the line.

In the PO schedule information you can see the following contract manufacturing-related details:

Destination Type is Inventory.
Work Order number.

When you communicate the PO to the supplier, it includes the contract manufacturing, product and work order information. This applies to PDF, e-mail, fax or print communication methods.

You can search for contract manufacturing-related PO's using the product and work order numbers.

For more information about contract manufacturing, see the Oracle Fusion Cloud SCM Implementing Manufacturing and Supply Chain Materials Management guide.