subcontracting (SCM-APO-PPS)

Production Planning and Detailed Scheduling (SCM-APO-PPS)

A process during which a product (ordered product) is manufactured by a vendor (subcontractor) who, however, requires certain components (products to be provided) in order to manufacture the product; These components are to be provided by the ordering party or by a third party. The vendor (subcontractor) sends the ordered product back to the ordering party, who then uses the ordered product as a component for the finished product.