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How to manage procurement route for products that can be either "manufacture" or "buy"?

By
Gabriel
on 9/23/14, 11:39 AM 952 views

In our company we have products that can be manufactured by ourselves or bought to suppliers. The decision between manufacturing or buying a particular product can be made according to:

  • Quantities available. If a quick order is confirmed and supplier product delivery not done yet, manufacturing can be done.
  • When work load is too high and/or supplier cost lower the product can be bought

Two ways seems feasible to handle this but not completely satisfying:

  • Creating 1 bom with bought product and 1 bom with manufactured product selected with a property ("buy" or "manufacture"). The problem is that properties are selected on the sales order only. And this decision has to be made by the manufacturing team only.
  • Using both "buy" and "manufacture" routes. But how can the decision been made?

How would you handle this (common I would say) case?

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Asked: 9/23/14, 11:39 AM
Seen: 952 times
Last updated: 3/16/15, 8:10 AM