Dynamics 365 Business Central: Subcontracting Efficiency in Manufacturing

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In the realm of contemporary manufacturing, subcontracting serves as a strategic avenue to boost operational efficiency, streamline costs, and uphold product standards. Dynamics 365 Business Central (BC) simplifies subcontracting for manufacturers. This article explores how BC helps businesses manage outsourcing processes effectively and foster a productive manufacturing environment.

Understanding Subcontracting

Subcontracting entails delegating specific production processes or components to external suppliers within the manufacturing domain. This approach allows manufacturers to tap into specialized expertise, address capacity limitations, and concentrate on their core strengths. Nonetheless, it also presents the challenge of maintaining oversight and control over outsourced operations.  

Dynamics 365 Business Central: A Solution for Subcontracting

Dynamics 365 Business Central emerges as a comprehensive business management solution uniquely tailored to meet the demands of subcontracting within the manufacturing landscape. By seamlessly integrating various facets of manufacturing operations, from order fulfilment to inventory control, it furnishes a centralized platform to oversee subcontracting endeavour efficiently.

Essential Functionality for Effectively Managing Subcontracting Operations

Subcontracting Purchase Orders

Dynamics 365 Business Central enables the creation of tailored purchase orders specifically for subcontracting services. These orders encompass detailed information regarding the items to be manufactured, required services, and delivery timelines, fostering transparent communication and agreements with subcontractors.

Inventory Oversight

The platform seamlessly monitors components dispatched to subcontractors and integrates them into the inventory management system. This ensures precise tracking of materials and finished products, mitigating the risk of inventory inconsistencies. 

Seamless Production Order Integration

Dynamics 365 Business Central harmonizes subcontracting tasks with primary production orders, allowing manufacturers to oversee outsourced work alongside internal production processes. This amalgamation facilitates a holistic production workflow perspective, augmenting decision-making, and operational efficiency.  

Quality Assurance and Regulatory Compliance

Leveraging its robust tracking functionalities, Dynamics 365 Business Central aids manufacturers in upholding quality standards and regulatory obligations with subcontractors. It enables the documentation and evaluation of quality metrics, guaranteeing that outsourced components or procedures adhere to established criteria.

Cost Management and Analysis

Dynamics 365 Business Central furnishes comprehensive cost-tracking capabilities for subcontracting endeavours, empowering manufacturers to scrutinize the financial implications of outsourcing. This visibility into expenditures facilitates informed strategic planning concerning subcontracting strategies and negotiations. 

Implementing Subcontracting in BC: Best Practices

Establish Clear Subcontracting Policies

Define precise guidelines and standards for subcontractor selection, encompassing quality benchmarks, delivery schedules, and cost parameters.

Harness Integrated Planning Tools

Make use of Dynamics 365 Business Central’s integrated planning features to ensure seamless alignment between subcontracting activities and overarching production schedules and inventory management.

Foster Transparent Communication

Cultivate an environment of open and transparent communication with subcontractors, leveraging the collaborative capabilities of Dynamics 365 Business Central to share updates, modifications, and feedback efficiently.

Monitor Performance and Compliance

Regularly assess subcontractor performance against predefined metrics and compliance standards, leveraging the reporting and analytics functionalities of Dynamics 365 Business Central to pinpoint areas for enhancement and adherence to standards.  


Subcontracting in manufacturing represents a valuable strategy for enhancing operational efficiency and maintaining product quality. Dynamics 365 Business Central provides manufacturers with comprehensive tools to manage subcontracting processes effectively, ensuring clear communication, streamlined operations, and adherence to standards. By leveraging the capabilities of Dynamics 365 Business Central, manufacturers can navigate the complexities of subcontracting with confidence, making informed decisions based on accurate data and insights. Embracing this solution empowers businesses to optimize their subcontracting activities, ultimately driving success and competitiveness in today’s dynamic manufacturing landscape. To know more, explore our innovative digital solutions or contact us directly.


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