2 subcontract operatons at 1 vendor

Anyone sending work out to subcontract vendor to perform 2 operations? Potential to have only 1 operation done due to in process inspection done at vendor site between operations.

How are you handling on PO and packing slips? 1 line for each operation - creating two shipments and two receipts (or a packing slip that appears to have twice as many parts shipping due to 2 lines for each part)?

Any suggestions?

IE - we send 500 parts to vendor for shtoblast and paint - all 500 get shotlast, 50 fail next inspec step and 450 get painted. They will ship 500 back - 450 shotblast and painted and 50shotblast only (so less cost - shotblast only cost).

We currently send out as a combined op and received back - but billing can’t tell what’s been apinted and what’s been shotblasted only to account for different charges.

Hi Patty,

How are you quoted/invoiced from the supplier(s)? One price for both operations or two prices, one for each?

Mark W.

They will invoice 1 combined price for pieces that make it through both ops and a different price if only through the first op. That’s what makes it hard for billing to know if we ship/receive as if only 1 combined op. However, the amount of extra work for shipping/receiving and the appearance of twice as much product shipping may not be worth straightening out for billing…?

It sounds like to me that they are two different operations since they will send you product back with only one operation complete. As such, I would ask the supplier to bill them separately and to report on all of the units that complete the first operation.

And this isn’t just for accountings benefit. I don’t know how the scheduling people could keep track of product otherwise. (I assume that you either directly supply the raw materials or drop ship them.)

I’m kind of interested in this process that can ship you finished and unfinished product. Can you go into more detail? You can send it offline if you don’t want to share it publicly. (mwonsil@perceptron.commailto:mwonsil@perceptron.com)


Mark W.