Simplify Subcontracting in D365 with Resource Consumption

How using the resource consumption in Formula or BOM will help you in the subcontracting process with multiple contractors.

When creating Subcontracting formula or BOM in D365, the common way is to define the vendor in the Formula or BOM lines. If you have only one subcontractor, this approach is fine. However, if you have multiple subcontractors you need to create as many formulas as subcontractors.

If you use resource consumption you can only create only one formula and use the vendor mentioned on the resource of the route. This approach can help you reduce the complexity and number of BOMs or formulas you need to manage.

Let’s see the set-up:

1-Create a subcontracted formula or BOM and add the service item. Make sure to change the line type to Vendor and mention the operation number of your route.

2-Activate resource consumption for all lines. No vendor account should be mentioned for the service item.

Now let’s move on to the route set-up:

3-First, create a warehouse for each of your subcontractors. Not mandatory but easier to track your inventory.

4-Then create a resource for the contractors and make sure to mention the vendor account.

Subcontractor 1

Subcontractor 2

5-On the resource group tab, assign the warehouse that you created previously.

6-Finally, create two routes and approve them.

Now  see the setup in action :

7-Create a planned production order and run a master planning to generate a planned production order with your subcontracting BOM and Route.

Go to Explosion

Then click on Planned Orders

You can see that vendor US-801 has been found for the service.

Transfer orders have also been generated to warehouse SUB1.

Let’s say that the subcontractor has no capacity for this planned order.

8-Go back to the planned order (same planned order) and select the other route. As we did not mention any vendor in the BOM, there is no need to change the BOM.

Return to the explosion and the planned orders tab.

The vendor has been changed to US-802 and the planned transfer orders are now on SUB2.

As you can see, by using resource consumption on the formula or the BOM you can use only one formula for your multiple subcontractors.

Currently this configuration is working only with the old engine master planning. Planning Optimization fails to allocate the vendor when using resource consumption. This issue has been reported to Microsoft, I hope this problem will be solved quickly.

Dynagile can help you leverage the standard functionality of D365. Do not hesitate to contact us.