How to Manage Co-Manufacturing in Cin7 Core: A Comprehensive Guide
In today’s competitive business landscape, co-manufacturing or outsourcing production processes is a strategic move for many companies looking to optimize their operations and leverage specialized expertise. If you’re using Cin7 Core and want to replicate an outsourced manufacturing scenario without the advanced production module, you’re in the right place. In this guide, we’ll break down a detailed method to effectively manage co-manufacturing within Cin7 Core, step by step.
Understanding the Scenario
The concept revolves around replicating a scenario where you provide parts to a supplier (or co-manufacturer) who then transforms these parts into finished goods. This process can be adapted based on your specific needs, whether you’re free issuing parts to the supplier or buying back a finished product.
Setting Up Your System
- Supplier Setup: Begin by setting up your co-manufacturer as a standard supplier in Cin7 Core. Ensure they have an additional location within your system to store the goods they’ll be working with.
- Product Creation: Create a product representing your co-manufactured item. This product should have an assembly bill of materials (BOM) attached to it, detailing the parts (or assembly) you’ll be providing to the supplier.
- Production Request: Set up a production request item to formalize your order for the manufacturing service from your supplier. This item should be categorized as a service type within Cin7 Core.
Executing the Co-Manufacturing Process
Step 1: Raise a Purchase Order
- Initiate a purchase order in Cin7 Core, specifying the co-manufacturing service.
- Select your supplier and ensure the location is correct.
- Include your production request item within the purchase order.
Step 2: Transfer Raw Materials
- Transfer the necessary raw materials to your co-manufacturer. This ensures they have the required components to commence production.
Step 3: Production Assembly
- Use the production module to create a new assembly.
- Specify the finished item SKU and quantity to match your purchase order.
- Confirm the assembly process, ensuring accurate usage of raw materials.
Step 4: Cost Allocation
- Once the production is complete, receive the invoice from your supplier.
- Allocate costs back to your finished goods using Cin7 Core’s expense account features.
- Distribute costs accurately based on the assembly details.
Ensuring Accurate Cost Tracking
By following these steps meticulously, you’re able to maintain precise cost tracking throughout the co-manufacturing process. This method allows you to allocate costs back to the finished goods, ensuring that your cost of goods sold (COGS) reflects the true production expenses.
Advantages and Considerations
While this method effectively manages co-manufacturing without the advanced manufacturing module, it’s essential to acknowledge that Cin7 Core’s advanced features offer enhanced traceability and integration across manufacturing processes. Consider exploring these advanced functionalities for more comprehensive manufacturing management.
Conclusion
Successfully managing co-manufacturing processes within Cin7 Core can streamline your operations and optimize supply chain efficiency. By leveraging these techniques, you can effectively coordinate with external partners while maintaining accurate cost tracking within your system.
We hope this guide has provided valuable insights into managing co-manufacturing scenarios within Cin7 Core. If you found this information helpful, don’t forget to like and subscribe for more insightful content on optimizing your business processes. Stay tuned for future updates!