Toll and Outsourced Manufacturing
Regardless of which outsourced production process you choose, having automated and real-time visibility from beginning to end gives you the ability to not only optimize your process to meet demand, it allows you to build strategic plans based up to the minute information.
Top Customer Challenges:
- We currently track our outsourced production by paper
- We waste hours reentering data coming and going
- I have no idea what materials are on hand at the outsource facility
Toll Manufacturing and Contract Manufacturing are commonly used options for outsourcing manufacturing. While the terms are often used interchangeably, they each represent a distinctly different process.
In toll manufacturing, one company sends raw materials or partly-finished goods to a third-party toll processing company who has the equipment and expertise necessary to finish the product in exchange for a fee or “toll.”
Contract manufacturing also involves outsourcing manufacturing, but in these arrangements, the contracted manufacturers will source the raw materials needed for production and will generally have control over vendor selection and quality management.
Both toll and contract manufacturing allow companies to respond to customer demands faster and eliminate any immediate need for overhead investments in equipment, facilities, and experienced labor, but each also has its own unique advantages and disadvantages.
- Built in the SAP Business ByDesign Studio so it looks and feels just like standard SAP Business ByDesign
- Fully integrated into SAP Business ByDesign, no need to switch systems
- Real-time visibility of outsourced work, materials and finished product
Is your organization facing challenges?
- Need a modern platform to handle challenges with toll manufacturing
- IT Investment and operations are typically not integrated to the back office or they have outgrown legacy system
- Automation is needed to complete outsourced MFG process while maintaining inventory visibility and GAAP compliance
- End-to-end visibility
- Manage potentially Complex Supply Chains
Will this solution help my organization?
- How many outsourced manufacturers do you use?
- Do you struggle with inventory visibility?
- Do you find the outsourced MFG process cumbersome?
- Do you find it difficult to track the valuation of your products sent for outside processing?
- Would you like to automate the process?
How We Meet These Needs
- The Navigator Tolling Configuration allows for the automation for the outside site’s inbound, production and outbound steps
- Full inventory transparency for onhand inventory at outsourced site
- Inventory valuation transparency, WIP and capitalized the value added services into the produced goods for financial compliance