In the SAP System, the processing, by an external supplier, of materials provided by a customer. The result of this processing is the manufacture by the supplier (subcontractor) of an ordered material or product, or the performance by the supplier of an ordered service.
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 that 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 his/her finished product.
Maintenance of a part by a vendor (in this case, a subcontractor), therefore, a form of outsourcing.
The service provider provides the part to be maintained to the subcontractor along with other components that may have to be exchanged during the subcontract rework. After maintaining the part, the subcontractor returns it to the service provider.