diff --git a/content/applications/inventory_and_mrp/manufacturing/subcontracting.rst b/content/applications/inventory_and_mrp/manufacturing/subcontracting.rst index 2c1bdd88d..b27a3b809 100644 --- a/content/applications/inventory_and_mrp/manufacturing/subcontracting.rst +++ b/content/applications/inventory_and_mrp/manufacturing/subcontracting.rst @@ -132,3 +132,4 @@ to factor in the cost of dropshipping. subcontracting/subcontracting_resupply subcontracting/resupply_subcontracting_lead_times subcontracting/subcontracting_dropship + subcontracting/dropship_subcontracting_lead_times diff --git a/content/applications/inventory_and_mrp/manufacturing/subcontracting/dropship_subcontracting_lead_times.rst b/content/applications/inventory_and_mrp/manufacturing/subcontracting/dropship_subcontracting_lead_times.rst new file mode 100644 index 000000000..455ff0259 --- /dev/null +++ b/content/applications/inventory_and_mrp/manufacturing/subcontracting/dropship_subcontracting_lead_times.rst @@ -0,0 +1,192 @@ +================================== +Dropship subcontracting lead times +================================== + +.. |PO| replace:: :abbr:`PO (Purchase Order)` +.. |RfQ| replace:: :abbr:`RfQ (Request for Quotation)` +.. |BoM| replace:: :abbr:`BoM (Bill of Materials)` + +In Odoo, lead times are used to predict how long it takes to complete a certain action. For example, +a *delivery lead time* can be set for a purchased product, which specifies the number of days it +usually takes for the product's vendor to deliver the product to the purchasing company. + +For subcontracted products specifically, delivery lead times can be configured to take into account +the amount of time required for the subcontractor to manufacture a product. Doing so allows the +contracting company to better predict the delivery dates of subcontracted products. + +Certain subcontracted products require the contracting company to supply the subcontractor with +manufacturing components. In this case, a *manufacturing lead time* can be used, in addition to the +delivery lead time, to generate the date on which the subcontractor must receive the required +components, in order to manufacture the product and deliver it on time. + +In cases where components are dropshipped to the subcontractor, an additional delivery lead time +can be set for each component. This should be set to the amount of time it takes the vendor to +deliver components to the subcontractor. + +Once a delivery lead time has been set on a component, dropship orders for the component display the +date by which the order must be confirmed, so that it can be dropshipped to the subcontractor by the +date on which manufacturing must begin. + +.. important:: + Like all lead times in Odoo, lead times for subcontracted products are only an estimate, and are + based on how long actions are *expected* to take. + + Unforeseen circumstances can impact the completion of these actions, which means that lead times + should not be viewed as guarantees. + +Configuration +============= + +When using the :doc:`Dropship Subcontractor on Order ` route, a company is +responsible for purchasing the necessary components from a vendor, and having them dropshipped +directly to the subcontractor. + +This means that, in addition to the amount of time it takes the subcontractor to manufacture and +deliver the product, it is also necessary to consider how long it takes the component vendor to +dropship the components to the subcontractor. + +By assigning a product's subcontractor a *delivery lead time*, specifying a *manufacturing lead +time* on the product's BoM, and assigning the vendor of the components an additional *delivery lead +time*, *Dropship Subcontractor* orders for the product's components display the deadline for +confirming a dropship order to send the components to the subcontractor. + +Product delivery lead time +-------------------------- + +To set a delivery lead time for a product's subcontractor, navigate to :guilabel:`Inventory app --> +Products --> Products`, and select a subcontracted product. + +Then, select the :guilabel:`Purchase` tab on the product's page. If the subcontractor has not +already been added as a vendor, do so now by clicking :guilabel:`Add a line`, and selecting the +subcontractor in the :guilabel:`Vendor` column. + +Once the subcontractor has been added, enter the number of days it takes them to manufacture and +deliver the product, in the :guilabel:`Delivery Lead Time` column. + +.. image:: dropship_subcontracting_lead_times/delivery-lead-time.png + :align: center + :alt: The Delivery Lead Time field for a subcontractor, on the Purchase tab of a product page. + +Product manufacturing lead time +------------------------------- + +Next, navigate to the product's |BoM| by clicking the :guilabel:`Bill of Materials` smart button at +the top of the product's page. Then, select a BoM from the list. + +On the |BoM|, select the :guilabel:`Miscellaneous` tab. In the :guilabel:`Manuf. Lead Time` field, +enter the same number of days that was entered in the :guilabel:`Delivery Lead Time` field of the +|BoM|'s product. + +.. image:: dropship_subcontracting_lead_times/manufacturing-lead-time.png + :align: center + :alt: The Manuf. Lead Time field on a product's BoM. + +While not all of these days are actually used for manufacturing by the subcontractor, setting the +same number of days in each field tells Odoo that the subcontractor must receive the components and +begin production by the start of the product's delivery lead time. This gives the subcontractor +enough time to both manufacture and deliver the product. + +Component delivery lead time +---------------------------- + +From the product's BoM, navigate to each component by clicking on the component in the +:guilabel:`Components` tab, and then clicking the :icon:`oi-arrow-right` :guilabel:`(right arrow)` +button to the right of the component. + +On the product page for each component, select the :guilabel:`Purchase` tab. If the vendor has not +already been added, do so now by clicking :guilabel:`Add a line`, and selecting the subcontractor in +the :guilabel:`Vendor` column. + +Once the vendor has been added, enter the number of days it takes them to dropship the product to +the subcontractor, in the :guilabel:`Delivery Lead Time` column. + +Dropship subcontracting workflow +================================ + +Create a request for quotation (RfQ) for the product by navigating to :menuselection:`Purchase app +--> Orders --> Requests for Quotation`, and clicking :guilabel:`New`. + +Specify the subcontractor in :guilabel:`Vendor` field. Then, add the product in the +:guilabel:`Products` tab by clicking :guilabel:`Add a product`, selecting the product in the +:guilabel:`Product` column, and specifying a quantity in the :guilabel:`Quantity` column. + +In the :guilabel:`Expected Arrival` field, enter a date that provides enough time for the component +vendor to dropship the components, and the subcontractor to manufacture and deliver the product. + +.. important:: + When a product is added to an |RfQ|, the :guilabel:`Expected Arrival` field auto-populates with a + date that is today's date plus the delivery lead time of the product. However, this does not + consider the time it takes to dropship the components to the subcontractor. + + When purchasing a product subcontracted using the *Dropship Subcontractor on Order* route, it is + necessary to adjust this date to take into account the extra time needed for the components to be + delivered to the subcontractor. + + Since production does not begin until they receive the components, leaving the date as is results + in the finished product arriving *after* the date listed on the |RfQ|. + +Next, click :guilabel:`Confirm Order` to turn the |RfQ| into a |PO|. Doing so creates a second |RfQ| +to purchase the components from the dropshipper, and have them sent to the subcontractor. + +Navigate to :menuselection:`Purchase app --> Orders --> Requests for Quotation`, and select the +|RfQ| that lists the dropshipper in the :guilabel:`Vendor` column. + +On the |RfQ|, the :guilabel:`Expected Arrival` field lists the date on which the subcontractor must +receive the components, in order to deliver the finished product by the *Expected Arrival* date +listed on the subcontractor |PO|. + +The :guilabel:`Order Deadline` field lists the latest date on which the |RfQ| can be confirmed, in +order for the dropshipper to deliver the components to the subcontractor by the :guilabel:`Expected +Arrival` date. + +Click :guilabel:`Confirm Order` to turn the |RfQ| into a |PO|, and confirm the purchase of the +components from the dropshipper. Doing so causes a :guilabel:`Dropship` smart button to appear at +the top of the page. + +Click the :guilabel:`Dropship` smart button to open the dropship order. This order can also be +accessed from the :guilabel:`Resupply` smart button that now appears on the subcontractor |PO|. + +After the dropshipper has delivered the components to the subcontractor, click the +:guilabel:`Validate` button at the top of the dropship order to confirm that the subcontractor has +received the components. + +Once the subcontractor receives the components, they begin manufacturing the component, before +delivering it to the contracting company. + +.. example:: + + Bike retailer *Mike's Bikes* works with a subcontractor — *Bike Friends* — to produce units of + their *Bicycle* product. + + Mike's Bikes must purchase the required components from vendor Bike World, and have them + dropshipped to Bike Friends. + + On average, Bike Friends takes three days to manufacture each bicycle, plus an addition two days + to deliver it to Mike's Bikes. + + As a result, Mike's Bikes sets a delivery lead time of five days for bicycle manufactured by Bike + Friends: three days for manufacturing, plus two days for delivery. + + On the bicycle's BoM, they enter a manufacturing lead time of five days as well, to remind + themselves of the date that components must be delivered to the subcontractor. + + On the product pages for each of the bicycle's components, they assign Bike World a delivery lead + time of two days. This is the amount of time it takes Bike World to dropship each component + directly to the subcontractor. + + On May 10th, Mike's Bikes confirms a |PO| for one bicycle, with an expected delivery date of May + 17th. + + The |RfQ| for purchasing the components from Bike World and having them dropshipped to Bike + Friends has an Expected Arrival date of May 12th, and a Deadline of May 10th. The |RfQ| must be + confirmed by the deadline in order for Bike Friends to receive the components by the Expected + Arrival date, giving them enough time to deliver the finished bicycle to Mike's Bikes by May + 17th. + + .. image:: dropship_subcontracting_lead_times/deadline-arrival.png + :align: center + :alt: The Order Deadline and Expected Arrival dates on a dropship order. + + Mike's Bikes confirms the |RfQ| on May 10th, and Bike World delivers the components to Bike + Friends on May 12th. 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