As companies increasingly rely on third-party manufacturers to meet production demands, managing these complex, multi-party relationships is crucial for operational efficiency. SAP S/4HANA offers a little-known functionality called Outsourcing Manufacturing (OM), which is as activated with a Business Function and allows organizations to streamline and optimize their external production processes.
This session will cover the key features of the Outsource Manufacturing solution, including integration with key business processes like procurement, inventory management, and production planning, accounting and costing.
We will showcase how SAP enables real-time visibility into outsourced operations, seamless collaboration with manufacturing partners, and better control over costs and quality. Learn how to enhance your production workflows, improve supply chain transparency, and drive operational excellence with SAP's comprehensive solution for Outsourced Manufacturing.
Whether you're in manufacturing, supply chain management, or IT, this webcast, presented by FI/CO and S/4HANA expert Surajit Mohanty, will provide valuable insights to help you manage your outsourced operations more effectively and help you learn the following:
- Prerequisites for setting up the SAP S/4HANA Outsourced Manufacturing solution - Live demo of end-to-end process steps for Outsourced Manufacturing
- Accounting entries that are generated with - Comparison of Outsourced Manufacturing with the traditional subcontracting process - Pros and cons of the different approaches to Subcontracting in SAP
Q&A
Q1) How would QM flow work with an Outsourced manufacturing process
The QM process for outsourced manufacturing is configured using two inspection types 01 and 05 as there are two movement types for goods receipts
Q2) Can the same batch be used for raw materials and outsourced finished products?
Standard SAP will not default the same batch determination for consumption and goods receipts. But using a BADI this could be achieved
Q3) Can the variance split be activated for Subcontracting?
Yes, using outsourced manufacturing this could be achieved.