How You Model a Multi-Tiered Relationship Between a Contract Manufacturer and a Supplier

In contract manufacturing relationships, you need to collaborate both with the contract manufacturer as well as the upstream component suppliers that provide critical components. Supply Chain Collaboration can send order forecasts to both the contract manufacturer as well as their suppliers as long as you model them in a collaboration relationship. This way, both the original equipment manufacturers and the contract manufacturer can get visibility to the component supply commitments.

This figure illustrates a multi-tiered relationship between a contract manufacturer and a supplier.
Model of a multi-tiered relationship between contract manufacturer and a supplier

The following table lists an example of a multi-tiered relationship between a contract manufacturer and a supplier.

Relationship

Ship From

Ship to

Item

1

Supplier B

Contract Manufacturer A (Organization A)

Component

2

Contract Manufacturer A

Organization X

Finished Item

In the example, Supplier B is shipping components to Contract Manufacturer A. Contract Manufacturer A is shipping the finished items to the enterprise Organization X.

The ship to attribute of a collaboration relationship is always mapped to an inventory organization or item organization. For Contract Manufacturer A to be a valid ship-to organization, you must model Contract Manufacturer A as an inventory organization.

To model a multi-tiered relationship between contract manufacturer and a supplier:

  1. Setup contract manufacturers (Ship-to Supplier Sites) as organizations associated to a supplier site in Oracle Supply Chain Planning Supply Network Model.

  2. Define a relationship in Supply Chain Collaboration by defining the ship-to as the contract manufacturer organization.

  3. Enable the contract manufacturer to view forecasts, edit forecast quantities and commit on behalf of their upstream suppliers within the Trading Partner Access section of the collaboration relationship.

For more information on using collaboration messaging, see the Oracle Procurement Cloud Implementing Procurement guide.