Outsourcing

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General

Outsourcing allows you to incorporate a vendor's goods and/or services into your purchase or manufacturing processes. You may outsource inventory parts, bundle parts, or bills of materials.

Supply Type

There are two types of supplies that may be added to an outsourced purchase order:

Company Supplied Input
This input is used to mark items that you will be sending to the vendor. You will be prompted to enter the site from which the part will be picked.
Vendor Supplied Input
The parts or services that the vendor is supplying will be marked as a Vendor Supplied Input. You will be prompted to enter the cost for the item.

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Create Outsource Purchase Order

  1. Navigate to the Purchasing module category and select Purchase Orders.
  2. Click New Purchase Order in the upper left corner.
    • For more information about creating purchase orders, continue here.
  3. When adding the line item, you will want to select the Outsource or BOM Outsource Line Type.
    • For more information about line items, continue here.
    • If you choose to outsource a bill of materials, the bill of materials must first be created in LOCATE. Continue here for more information.
  4. Now that the line items have been added, you may specify the supply types, and apply any costing or site information.
  5. Edit details, add notes, upload documents, view related records, apply payments, run reports or add custom fields as desired.

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Issue Outsource Purchase Order

Once the purchase order is ready to be processed it will need to be issued. For step-by-step instructions on how to issue purchase orders, continue here.


Issuing the order prevents adding items or further editing order details. Any company supplied inputs will be queued for picking from the warehouse so that they may be packed and shipped to the vendor. Items which are vendor supplied inputs will be pending vendor confirmation.

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Vendor Confirmation

Vendor confirmation provides an extra step between shipping company supplied items and receiving the vendor's output, to indicate that the vendor received the company inputs and is working on the order. In order to perform a vendor confirmation, any associated company supplied inputs must first complete pickup. Vendor confirmation will queue the output part for receiving, and the vendor supplied input will be ready to reconcile.

By Order

You may confirm vendor receipt for all items on an order at once. Note: this will require that all company supplied inputs have completed pickup.

  1. Navigate to the profile page of the purchase order for which you would like to confirm vendor receipt.
  2. Open the Actions menu and select Confirm Vendor Receipt.

You may now proceed with receiving and reconciling line items as desired.

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By Line

Once a purchase order has been issued, the quantities and costs may not be edited. Therefore, if you need to change the work order quantities or costs or split the quantities to a new work order, you would do so at the line item level.

Confirm In Full

This option allows you to edit the quantities and costs before finalizing confirmation. For example, if a vendor reports that they are only able to fulfill 190 out of 200, you may adjust the work order quantity to reflect 190.

  1. Navigate to the profile page of the purchase order for which you would like to confirm vendor receipt.
  2. Next to the desired output part, open the Edit drop-down menu to the right.
  3. Select Confirm Vendor Receipt.
  4. In the upper right corner, click Confirm in Full.
  5. If you need to change the quantities and costs, click Edit.
  6. Fields:
    • WO Qty - Enter the final quantity the vendor will fulfill.
    • Cost - Enter the total cost of the item.
  7. Click Save.
  8. Click Finish Confirmation.

You may now proceed with receiving and reconciling line items as desired.

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Split To Work Order

Splitting during vendor confirmation allows you to finish and receive a partial quantity of a line item, and push the remaining quantity to a new work order. This keeps the purchase order open and associated to all work orders created until the whole purchase order is complete.

  1. Navigate to the profile page of the purchase order for which you would like to confirm vendor receipt.
  2. Next to the desired output part, open the Edit drop-down menu to the right.
  3. Select Confirm Vendor Receipt.
  4. In the upper right corner, click Split To Add'l WO.
  5. Click Edit.
  6. Fields:
    • WO Qty - Enter the quantity of the item the vendor is going to fulfill immediately.
    • Split Qty - Enter the quantity of the item that should be transferred to a new work order and fulfilled at a later date.
    • Cost - Enter the total cost of the item.
  7. Click Save.
  8. Click Finish Confirmation.

You may now proceed with receiving and reconciling line items as desired.

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