In manufacturing, subcontracting is the process of a company engaging a third-party manufacturer, or subcontractor, to manufacture products that are then sold by the contracting company.
In basic subcontracting, the subcontractor is responsible for acquiring the necessary components. This means that the contracting company only has to worry about what happens to subcontracted products once they are produced.
The workflow for purchasing a product manufactured using basic subcontracting is similar to the one used when purchasing a non-subcontracted product from a vendor. The main differences are the way that subcontracted products are configured, and the fact that subcontracted products take longer to be sent from the vendor, since they must first be manufactured by them.
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