How to Configure Subcontracting

If you need to subcontract the production of a product or just part of it, Odoo provides a complete configuration to manage the process efficiently.

Start by enabling Subcontracting​ in Manufacturing > Configuration > Settings > Subcontracting​. Then, create a Bill of Materials (BoM) for your product and set it up with the following:

  1. ​BoM Type​: Select Subcontracting.
  2. ​Subcontractors​: Choose the subcontractors responsible for production.
  3. ​Manufacturing Lead Time​: Set this for accurate production timelines.

The next steps of the configuration are influenced by two main factors:

  1. How components are supplied to the subcontractor.
  2. Where the final product needs to be delivered.

Based on how components are sourced, Odoo supports three subcontracting options:

  • Base Subcontracting: The subcontractor provides the components. In this case, there is no need to list the components in the BoM.
  • Resupply Subcontractor: Components are sent from your warehouse to the subcontractor. This requires the following routes on each of the components:
    • The Buy​ route for component procurement. Additionally, if you want to automate procurement, use MTO​ route or Reordering Rules.
    • The Resupply Subcontractor on Order​ route to send the components to the subcontractor.
  • Dropship to Subcontractor: Components are purchased and shipped directly to the subcontractor. To set this up:
    • Enable Dropshipping​ in Inventory > Configuration > Settings > Logistics​.
    • Apply the Dropship Subcontractor on Order​ route to the components.

The routes set on the final product mainly depend on its delivery location:

  1. If it is received at your warehouse, enable the Buy​ route on it. Additionally, to automate purchase order (PO) creation, apply the MTO​ route or use Reordering Rules, depending on the company's needs.
  2. If it is sent directly to the customer, use the Dropshipping​ route only.

It is very important that both the final product and components (if applicable) have a Vendor with pricing set so that Odoo can generate POs automatically. Also, ensure that the subcontractor added as a Vendor on the final product is set as a subcontractor in the BoM; otherwise, Odoo will initiate only a purchasing flow instead of subcontracting.

Now, with a few steps, you can automate your subcontracting process in Odoo.