Keystone Industries
Subcontract manufacturing
Work to customer drawings, often with customer-supplied material, against call-off schedules the customer can amend.
What is different about running one of these
- 01
A meaningful proportion of material is customer-supplied or free-issue, and must never be valued as though you bought it.
- 02
Demand arrives as schedules and call-offs rather than as discrete orders.
- 03
The same part may be made for several customers to slightly different requirements.
- 04
On-time delivery performance is measured by the customer, and they will quote it back at you.
Where it usually goes wrong
Free-issue material valued as your own
Customer material is received into stock and picked up by costing as though it were purchased. Job margin is wrong, and so is the stock valuation.
Call-offs against a schedule nobody nets
A schedule is agreed, then amended. Making to the original and shipping to the amendment is how finished stock accumulates.
Delivery performance you cannot evidence
The customer reports your OTIF. Disagreeing with it requires your own record of promised date against actual despatch, by line.
What helps, and why here in particular
- 01
Enquiry, quotation and sales order
Customer account defaults and a recorded contract review, so what was agreed is on the order rather than in an email. - 02
Material requirements planning
Accepted demand is netted against stock, open production and purchase balances, with every recommendation pegged to the demand behind it. - 03
Despatch and certificates
Consignments record what actually left against the order lines they satisfy, which is the basis for your own delivery record.
Next step
See it against subcontract manufacturing work
A walkthrough starts with your orders, your production flow and your material problems. We follow one of your jobs through the system rather than presenting a feature list.