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Subcontracting in S/4HANA

Manage Outsourced Manufacturing Transparent and Efficiently

The key to effective handling of external assignments

Companies outsource manufacturing or finishing steps to external partners for a wide variety of reasons—whether due to a lack of capacity, the need for specialized manufacturing technologies, or to optimize the supply chain. With SAP S/4HANA, these processes can be mapped end-to-end—from traditional subcontracting through multi-stage scenarios to drop-shipping. This requires accurate master data, well-thought-out material planning, and optimal use of standard SAP functions. CONSILIO supports you in designing your subcontracting processes to be transparent, efficient, and future-proof.

Benefits

By using the subcontracting process in SAP, a company benefits from end-to-end visibility of the business partner relationship between the company and its suppliers. By maintaining the necessary master data, it is possible to automate the ordering process. The entire flow of documents and goods can be tracked throughout the entire process chain. 

  • Transparent planning through subcontracting scheduling areas 
  • Overview of inventory and materials provided by the subcontractor
  • Support for traditional and multi-stage subcontracting
  • Third-party order processing to reduce transport runs and lead times 
  • Automated material staging via special procurement key 
  • End-to-end tracking of all material and document flows 
  • Integration with procurement, production, sales, and PP/DS

More than just traditional subcontracting

Modern supply chains often consist of multiple external processing stages. SAP S/4HANA not only supports the traditional supply of components to a single subcontracter, but also complex scenarios involving multiple processing steps. 

By utilizing third-party order processing and subcontracting scheduling areas, companies can optimize material flows, avoid unnecessary transportation, and plan inventory transparently. CONSILIO supports companies in designing and implementing these enhanced processes based on the SAP standard.

Subcontracting cockpit

In addition to the integration of payroll processing in all SAP modules, you can also benefit from innovations in the SAP Fiori environment. Use the payroll cockpit to efficiently control your payroll processes in the company:

Our experts can assist you with:

  • Analysis of existing subcontracting processes 
  • Designing efficient material flows 
  • Introduction of subcontracting planning areas 
  • Optimization through multi-stage subcontracting
  • Introduction of third-party order processing
  • Integration with PP/DS, EWM, and other SAP modules 
  • Training for departments and key users
Carla Lochte

SAP Subcontracting allows companies to map individual production steps that they outsource to external service providers transparently and clearly in the system.

Carla Lochte, Senior Consultant Sourcing & Procurement CONSILIO GmbH Contact expert

Effectively handle suppliers!

Use payroll processing in S/4HANA and create added value!

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