Odoo Subcontracting Module: Manufacturing Guide

What Is Odoo Subcontracting?

Odoo Subcontracting manages outsourced manufacturing operations. When you send raw materials to a third-party manufacturer (subcontractor) who produces finished or semi-finished goods, this module tracks the entire flow — shipping materials out, receiving finished products back, and accounting for the costs. It is common in industries like electronics, textiles, food processing, and automotive.

Module Setup

Subcontracting is part of the Manufacturing module. Enable it in Settings → Manufacturing → Subcontracting. Once enabled, you can create subcontractor-type BOMs.

Subcontractor Bill of Materials

Creating a Subcontractor BOM

1. Manufacturing → Configuration → Bills of Materials
2. Create a new BOM for the finished product
3. Set BOM Type to Subcontracting
4. Add the subcontractor(s) in the Subcontractors field
5. Define the components (raw materials you supply)

# Example: Subcontracted PCB Assembly
# Product: Assembled PCB Board
# BOM Type: Subcontracting
# Subcontractor: ElectroParts Corp
# Components (you supply):
#   - Bare PCB Board (1 unit)
#   - Capacitor C-100 (4 units)
#   - Resistor R-200 (8 units)
#   - IC Chip U-300 (1 unit)
# Subcontractor provides: Solder, labor

Subcontracting Workflow

End-to-End Flow

# Step-by-step process:
# 1. Purchase Order → Create PO to subcontractor for finished product
# 2. Resupply → Odoo generates a delivery order to ship components
# 3. Ship Components → Send raw materials to subcontractor
# 4. Production → Subcontractor manufactures the product
# 5. Receive Goods → Receive finished product from subcontractor
# 6. Quality Check → Inspect received goods (optional)
# 7. Invoice → Receive and pay subcontractor's bill

# Inventory movements:
# Your stock → Components shipped to subcontractor location
# Subcontractor location → Finished goods received to your stock

Component Resupply

Automatic Resupply

When you confirm a purchase order for a subcontracted product, Odoo automatically generates a delivery order to ship the required components to the subcontractor.

Resupply Methods

Subcontractor Location

Odoo creates a virtual inventory location for each subcontractor. This tracks:

• Components in transit to subcontractor
• Components at the subcontractor's facility
• Finished goods in transit back to you

Receiving Finished Goods

When the subcontractor ships the finished product:

1. Receive the goods against the purchase order
2. Odoo automatically consumes the components from the subcontractor location
3. Finished product enters your inventory
4. Manufacturing order is marked as done

Quality Checks

Configure quality control points for subcontracted goods:

• Incoming inspection when receiving from subcontractor
• Sampling plans for batch quality verification
• Reject and return workflow for failed inspections

Cost Tracking

Subcontracting costs include multiple components:

# Cost breakdown:
# 1. Component cost — Materials you supply
# 2. Subcontracting fee — Per-unit or per-batch fee
# 3. Shipping cost — Outbound (components) + Inbound (finished goods)
# 4. Quality/rework cost — If applicable

# Product cost calculation:
# Component cost: $15.00 (4 capacitors + 8 resistors + 1 IC + 1 PCB)
# Subcontracting fee: $8.00 per unit
# Shipping: $0.50 per unit (amortized)
# Total cost: $23.50 per assembled PCB

Multi-Step Subcontracting

For products requiring multiple subcontractors in sequence:

• Step 1: Send raw materials to Subcontractor A for machining
• Step 2: Receive machined parts, send to Subcontractor B for coating
• Step 3: Receive coated parts into finished goods

Each step has its own subcontractor BOM and purchase order.

Reporting

• Subcontractor Performance — On-time delivery, quality pass rates
• Cost Analysis — Subcontracting cost vs. in-house manufacturing
• Component Consumption — Materials sent vs. products received
• Lead Time — Average turnaround by subcontractor

Best Practices

• Accurate BOMs — Component quantities must match what the subcontractor needs
• Buffer stock — Send 2-5% extra components for production losses
• Quality checks — Always inspect subcontracted goods on receipt
• Track lead times — Factor subcontractor turnaround into planning
• Clear contracts — Define liability for component waste and quality failures

DeployMonkey + Subcontracting

DeployMonkey's AI agent configures subcontractor BOMs, resupply rules, and quality checks for your outsourced manufacturing operations.