Material sent out has not left your stock — only your building
The treacherous part of subcontracting is this: the material physically leaves your warehouse, but ownership stays with you. In most companies that distinction is never recorded, so the material drops out of the system the moment it ships and stays invisible until it comes back. Throughout that window, the only way to learn how much of your material is outside is to call the subcontractor.
The time material spends outside
Subcontracting is not a transaction, it is a period. Unless all three stages are recorded separately, the balance in between disappears.
Outsource dispatch
Material goes out to the subcontractor. It does not leave stock; it is recorded as "at subcontractor". Which job it went for, and how much, is known.
Outsource transfer
If the job moves between several subcontractors, each handover runs as its own movement so the chain never breaks.
Outsource receipt
Processed material comes back. Sent and returned are compared, and waste or shortfall becomes visible at that moment.
Questions with no answer when nothing is recorded
- How much of my material is outside right now?
- At which subcontractor, and for which job?
- How much of what I sent came back, and how much became waste?
- When reconciling with the subcontractor, whose record is authoritative?
- Is material at a subcontractor part of my sellable stock or not?
Where this matters most
Automotive supply
Coating, heat treatment, and surface work go out to subcontractors, and parts have to return on the line's schedule.
Furniture
Cutting, painting, and upholstery happen in different workshops; the same batch changes hands more than once.
Set up your own subcontracting flow
In the demo, let's define your own outsourcing process and look at how the outside balance appears.
Request a Demo