Oracle Contract Manufacturing provides a robust, cloud-based solution that enables organizations to manage outsourced production processes effectively. By offering real-time visibility into contract manufacturing orders, inventory, and supplier collaboration, Oracle helps businesses maintain control and consistency across external production networks.
This article explores the key features, benefits, and strategic role of Oracle Contract Manufacturing in driving operational efficiency and supply chain agility.
What is Oracle Contract Manufacturing?
Contract manufacturing is a business process in which the Original Equipment Manufacturer (OEM) outsources manufacturing operations to another organization, the Contract Manufacturer (CM), to manufacture a partial or full product. This process in the Oracle landscape empowers the equipment manufacturer to completely outsource their manufacturing process to the contract manufacturer, creating a purchase order for the contract manufacturing service item and its associated work orders.
Within the Oracle Contract Manufacturing solution, the Original Equipment Manufacturer may supply some or all product components to the Contract Manufacturer; however, the Contract Manufacturer is responsible for manufacturing the product to the exact specifications of the OEM’s product label. Oracle’s solution provides built-in support for the outsourcing of manufacturing jobs across both build-to-order and build-to-plan manufacturing landscapes.
Key Features and Benefits
End-to-End Visibility of Subcontracted Orders
Oracle’s Contract Manufacturing service provides complete visibility into outsourced manufacturing processes, including production status and inventory levels. This transparency enables users to proactively manage delays, mitigate risks, and enhance coordination with contract manufacturers.
Integrated Supply Chain and Financials
Oracle Contract Manufacturing seamlessly connects procurement, logistics, and financial data. This integration ensures accurate cost tracking, timely billing, and synchronized transactions across systems, helping businesses optimize margins and compliance.
Automated Work Order and Material Management
OEM’s enterprise system supports automatic generation and tracking of work orders for subcontracted items, including material issue and receipt processes. This reduces manual effort, minimizes errors, and ensures materials availability when needed.
Supplier Collaboration Tools
Through the Oracle Fusion Cloud portal and collaborative workflows, contract manufacturers can share real-time updates, confirm orders, and report production milestones. This promotes better alignment between internal teams and external partners.
Support for Complex Manufacturing Scenarios
Whether managing multi-tier contract manufacturing, component-level outsourcing, or co-manufacturing models, Oracle offers flexible configurations to handle diverse manufacturing relationships, enhancing scalability and operational agility.
Understanding the Contract Manufacturing Lifecycle
Oracle’s Contract Manufacturing solution supports key business processes, including Manufacturing, Logistics, Procurement, Supply Chain Planning, Supply Chain Orchestration, and Order Management, to facilitate a seamless business flow for effective work order production across business units.
While the Contract Manufacturer acts as an external entity to manufacture only one part of the production and return it to the enterprise, the Contract Manufacturing solution enables Original Equipment Manufacturers to monitor the end-to-end manufacturing process in real-time. This allows users to track inventories created internally and stored in the manufacturer’s facility, regardless of whether they are just components supplied by the OEM or parts of a finished good.
How Can We Help?
Surety Systems offers deep expertise and industry knowledge to help clients navigate the complexities of the Oracle Fusion Cloud landscape. Whether you’re looking to implement applications for the first time, optimize existing workflows, or integrate your Oracle Contract Manufacturing solution with broader supply chain or financial systems, our senior-level Oracle consultants offer tailored advisory services and hands-on consulting support to ensure project success.
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