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In Odoo, lead times are used to predict how long it takes to complete a certain action. For example, a delivery lead time can be set for a purchased product, which specifies the number of days it usually takes for the product’s vendor to deliver the product to the purchasing company.

For subcontracted products specifically, delivery lead times can be configured to take into account the amount of time required for the subcontractor to manufacture a product. Doing so allows the contracting company to better predict the delivery dates of subcontracted products.

Certain subcontracted products require the contracting company to supply the subcontractor with manufacturing components. In this case, a manufacturing lead time can be used, in addition to the delivery lead time, to generate the date on which the subcontractor must receive the required components, in order to manufacture the product and deliver it on time.

 Important

Like all lead times in Odoo, lead times for subcontracted products are only an estimate, and are based on how long actions are expected to take.

Unforeseen circumstances can impact the completion of these actions, which means that lead times should not be viewed as guarantees.

Configuration

When using the Resupply Subcontractor on Order route, a company is responsible for supplying the subcontractor with the necessary components. As a result, the subcontractor cannot begin manufacturing until the components have been received.

This means that, in addition to the amount of time it takes the subcontractor to manufacture and deliver the product, the date they receive the components must also be considered.

By assigning a product’s subcontractor a delivery lead time, and specifying a manufacturing lead time on the product’s bill of materials (BoM), Resupply Subcontractor orders for the product’s components display the deadline by which the subcontractor must receive the components.

Product delivery lead time

To set a delivery lead time for a product’s subcontractor, navigate to Inventory app ‣ Products ‣ Products, and select a subcontracted product.

Then, select the Purchase tab on the product’s page. If the subcontractor has not already been added as a vendor, do so now by clicking Add a line, and selecting the subcontractor in the Vendor field.

Once the subcontractor has been added, enter the number of days it takes them to manufacture and deliver the product, in the Delivery Lead Time column.

Product manufacturing lead time

Next, navigate to the product’s BoM by clicking the Bill of Materials smart button at the top of the product’s page. Then, select a BoM from the list.

On the BoM, select the Miscellaneous tab. In the Manuf. Lead Time field, enter the same number of days that was entered in the Delivery Lead Time field of the BoM’s product.

While not all of these days are actually used for manufacturing by the subcontractor, setting the same number of days in each field tells Odoo that the subcontractor must receive the components and begin production by the start of the product’s delivery lead time. This gives the subcontractor enough time to both manufacture and deliver the product.

Resupply subcontracting workflow

Create a request for quotation (RfQ) for the product by navigating to Purchase app ‣ Orders ‣ Requests for Quotation, and clicking New.

Specify the subcontractor in Vendor field. Then, add the product in the Products tab by clicking Add a product, selecting the product in the Product column, and specifying a quantity in the Quantity column.

In the Expected Arrival field, enter a date that provides enough time for the subcontractor to receive the components, manufacture the product, and deliver it back to the subcontracting company.

 Important

When a product is added to an RfQ, the Expected Arrival field auto-populates with a date that is today’s date plus the delivery lead time of the product. However, this does not consider the time it takes to ship the components to the subcontractor.

When purchasing a product subcontracted using the Resupply Subcontractor on Order route, it is necessary to adjust this date to take into account the extra time needed for the components to be shipped to the subcontractor.

Since production does not begin until they receive the components, leaving the date as is results in the finished product arriving after the date listed on the RfQ.

Next, click Confirm Order to turn the RfQ into a PO. Doing so causes a Resupply smart button to appear at the top of the page.

Click the Resupply smart button to open the resupply subcontractor order, which is the order created to send components to the subcontractor.

The Deadline field on the resupply subcontractor order shows the deadline for the subcontractor to receive the components, in order for them to have enough time to manufacture and deliver the finished product by the Expected Arrival date.

The Scheduled Date field should display the latest date on which components can be shipped, while still arriving to the subcontractor by the Deadline. However, by default, the date displayed is the same as the date in the Deadline field, and must be updated to take into account the time required for shipping.

Click on the Scheduled Date field to open a calendar popover from which a date can be selected. Select a date that allows for the components to be delivered by the Deadline on the resupply subcontractor order.

After the components are shipped, click the Validate button at the top of the order to confirm they have been sent to the subcontractor.

Once the subcontractor receives the components, they begin manufacturing the component, before delivering it to the contracting company.

 Example

Bike retailer Mike’s Bikes works with a subcontractor — Bike Friends — to produce units of their Unicycle product.

Mike’s Bikes must supply Bike Friends with the necessary components for manufacturing the unicycles.

On average, Bike Friends takes three days to manufacture each unicycle, plus an additional two days to deliver it to Mike’s Bikes.

As a result, Mike’s Bikes sets a delivery lead time of five days for unicycles manufactured by Bike Friends: three days for manufacturing, plus two days for delivery.

On the unicycle’s BoM, they enter a manufacturing lead time of five days, as well, to remind themselves of the date that components must be delivered to the subcontractor.

They confirm a PO for one unicycle, with an expected arrival date of May 30th.

The resupply subcontractor order for shipping the components to the subcontractor shows a Deadline of May 25th. The subcontractor must receive the components by this date, in order to have enough time to manufacture the unicycle, and deliver it by May 30th.

It takes Mike’s Bikes two days to deliver the components, so they update the Scheduled Date field on the resupply subcontractor order to May 23rd, two days before the Deadline.

Mike’s Bikes ships the components to Bike Friends on the scheduled date of May 23rd, and they arrive on the deadline of May 25th. This gives Bike Friends enough time to manufacture the unicycle, and ship it back to Mike’s Bikes by the expected arrival date of May 30th.