How You Set Up Manufacturing

Before you can process procurement transactions for contract manufacturing service items, you must perform setup tasks for suppliers and agreements.

Perform the following procurement-related setup to support transactions for contract manufacturing items:

Define the contract manufacturer as a supplier and supplier site.
Set up a blanket purchase agreement for the contract manufacturer and item.

How You Define Supplier and Site

Set up suppliers and sites using the Manage Suppliers task in the Suppliers work area.

Define the contract manufacturer as a supplier.
Set the supplier type to Supplier.
Define each of their manufacturing locations as a supplier site.
Assign requisitioning business units to each site.

How You Set up Blanket Purchase Agreement

Set up blanket purchase agreements for contract manufacturing service items using the Manage Agreements task. You can find the task in Setup and Maintenance work area, in the Purchase Agreements and Purchase Orders functional areas.

In the Order Creation Controls section, optionally select the check boxes to automatically create purchase orders from requisitions.
- Automatically generate orders
- Automatically submit for approval
Attach the work definition document to the agreement line for the item, using the To Supplier category.

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