What is subcontracting in SAP IS-AD - SAP for Aerospace & Defense?

SAP Term: subcontracting

• Component: IS-AD

• Component Name: SAP for Aerospace & Defense

• Description: Aerospace & Defence Industry Solution Maintenance of a part by a vendor in this case, a subcontractor, therefore, a form of outsourcing. The service provider provides the part to be maintained to the subcontractor along with other components that may have to be exchanged during the subcontract rework. After maintaining the part, the subcontractor returns it to the service provider.

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• Key Concepts: 
  Subcontracting is a process in which a company outsources certain tasks or services to another company. In the IS-AD SAP for Aerospace & Defense component, subcontracting is used to manage the procurement of goods and services from external suppliers. This includes the management of subcontractors, the tracking of orders, and the monitoring of delivery and payment. 
  
  How to use it: 
  The IS-AD SAP for Aerospace & Defense component provides a range of tools to manage subcontracting activities. These include the ability to create and manage subcontractors, track orders, monitor delivery and payment, and generate reports. The system also provides tools for managing supplier relationships, such as supplier performance evaluations and supplier scorecards. 
  
  Tips & Tricks: 
  When using the IS-AD SAP for Aerospace & Defense component for subcontracting activities, it is important to ensure that all relevant information is accurately captured in the system. This includes details such as order quantities, delivery dates, payment terms, and any special requirements. It is also important to ensure that all subcontractors are properly managed and monitored to ensure that they are meeting their contractual obligations. 
  
  Related Information: 
  For more information on subcontracting in the IS-AD SAP for Aerospace & Defense component, please refer to the official documentation available on the SAP website. Additionally, there are a number of online resources available which provide further guidance on how to effectively manage subcontracting activities in this system.