# Subcontracting

Subcontracting is a contract through which a company (the principal) entrusts another company (the subcontractor) with the production of part of its output or certain components. The SIMAX Subcontracting module allows you to manage production carried out by a subcontractor within the company or an external supplier. If necessary, your subcontractors can access an extranet. With this module, you can:

• Delegate part of your production to a subcontractor

• Follow the progress of the production of subcontracted components or products

## Prerequisites: creation of items and raw materials, creation of bills of materials

The use of subcontracting requires the creation of items and raw materials, as well as the definition of bills of materials.

### Creation of items and raw materials

The creation of items and raw materials is a key step in structuring and organizing the elements necessary for production.

*<mark style="color:blue;">**Here is the case of a company specializing in dairy products:**</mark>*

MASOCIETE is a company renowned for the taste of its yogurt. To prepare yogurt in pots, the product manager creates the raw materials in their management system:

Milk

Sugar

Pots

As well as the items that will be manufactured:

Yogurt in pots (finished product)

Cream (which will be subcontracted)

**Implementation:**&#x20;

To create articles, go to Files > Item > Items, then \[\[New]].

Raw materials:

**The Milk**

<figure><img src="/files/YNBhmz8psibhNPO4E8Ni" alt=""><figcaption></figcaption></figure>

**The Sugar**

<figure><img src="/files/YN9pSrQkSgng0EZEXvqu" alt=""><figcaption></figcaption></figure>

**Pot**

<figure><img src="/files/B29TZc17n5pgDEIGwwnQ" alt=""><figcaption></figcaption></figure>

Manufactured items:

**Cream** (subcontracted), **with milk and sugar as ingredients.**

<figure><img src="/files/PdJ8Y57FVjj72QMNkV20" alt=""><figcaption></figcaption></figure>

**Yogurt in a pot, with the necessary components and operating range.**

<figure><img src="/files/hYATEvmUqvy7yG4DsVzs" alt=""><figcaption></figcaption></figure>

And, **save.**

{% hint style="info" %}
Be sure to mention the supplier in **\[Purchase]** for the subcontracted item.
{% endhint %}

<figure><img src="/files/HACpGGcqSGGWEEbScvvo" alt=""><figcaption></figcaption></figure>

{% hint style="success" %}
Before moving on to the next step, check the stock status of your raw materials.
{% endhint %}


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