What is Subcontracting?
Subcontracting
Sending our materials to another company for processing and then receiving them back.
What it means
This means outsourcing processes that require equipment or technology that the factory does not have to other companies. The difference from buying it is that we provide the ingredients ourselves. So, you only pay the processed price, not the actual price.
The materials you send are our inventory, even if they are outside the factory. On the screen, the outsourcing company is set to one warehouse and the writing is moved there.
At the pen factory
On the 18th day, 200 pieces of barrel are sent to Saegim Printing to print the logo. The sent barrel is moved to the “outsourced” warehouse, and is organized into the one used when 200 pieces of printed barrels arrive.
Why it matters
If you delete sent materials from your inventory, you will no longer be able to guess how many were sent and how many were returned.
How this differs from Purchase order
When placing an order, the product is purchased and the materials are provided by the supplier. For outsourced processing, we only entrust the work and provide the materials.