Article

July 2024



Outsourcing Labour with OurSys

Every manufacturing company specialises in a certain number of manufacturing processes and rest of the operations are outsourced. There are more reasons for outsourcing. Some do it to have flexible capacity and some to reduce the complexities that come with the varieties of operations.

There are many scenarios under which outsourcing of labour is done. OurSys is equipped with the most comprehensive Outsourcing module in the industry and deals with all the possible variations. Here is a brief information on the scenarios and how it is dealt with in OurSys.


Benefits of using OurSys Outsourcing


There are several benefits of using OurSys for outsourcing.

  • Control on the commercial terms of outsourcing through the labour purchase order
  • Control on the quantity of material being sent and received
  • Accurate account of material lying with the suppliers
  • Warning dashboard for material lying with suppliers for more than 2 months
  • Facility to receive scrap and account for it
  • Quick generation of Delivery Note inline with the taxation norms
  • Generation of Goods Receipt Note for Outsourcing with unit of measurement conversions wherever required
  • Incoming inspection to ensure Quality Control as per the Quality plan
  • Quick and accurate bill passing considering labour rates and inspection accepted quantities
  • Labour Supplier Performance Rating
  • Delivery Note (Challan) wise account of material sent and received

Scenarios covered by OurSys ERP


Sending material for processes other than the first process

This is the most common mode for outsourcing. Sending material for heat treatment, powder coating, sand blasting, machining etc are some of the examples.

Here the item no. of the item being sent and the item being received are the same. The only difference is the operation done at the vendor's place.

With OurSys there is no need of creating distinct item numbers for each process. Thus it reduces the total number of items in the master.

It is possible to have a different unit of measure for the item and for the process being done at the vendor's place. For example, the item could be in nos. whereas the heat treatment charges can be per kg.


Sending material for the first process

This is the second scenario. Here the item being sent and item being received are different.

OurSys allows you to issue material to the supplier, say in kg or m and then receive the material in nos. after machining.

During receiving, OurSys calculates the raw material that must have been consumed and keeps account of the material until complete material has been returned back.


Sending raw material in bulk and later getting items made from it.

In order to save logistic cost, companies ask their raw material suppliers to deliver the material directly to the supplier.

Typically it is a running material. The instruction of what to make and how much to make is given to the supplier later in the form of a schedule.

OurSys keeps the lot wise track of material and maintains material traceability.


Sending undefined material to suppliers for special labour work

Sometimes, a part of some assembly is disassembled and sent out for some process. This sub-part of the assembly does not bear any specific item number.

OurSys has a special provision to deal with this scenario by sending material out on a description. This feature is very handy in many other non standard scenarios.

This feature can be used for sending items like motors for repairing. Basically any returnable material being sent for some paid process.


Sending material for one time job

Usually OurSys has open quantity labour contracts for all the outsourcing jobs. But sometimes, the cost of labour is specific to that job.

OurSys has a special feature for one time jobs as well.


We hope this article has given you a better perspective on how OurSys handles Outsourcing.



Feedback

Was this article useful to you? Do let us know how we can further improve. Your feedback is precious to us.

Please click here to give us your feedback.

Articles
NewsLetters
Help Centre

Coming Up...