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<ManualTopic ID="/baanerp/fm/onlinemanual/000067" xml:lang="en">
   <Header>
      <Title>To set up subcontracting</Title>
      <Keyword type="header" order="d1e501437">
         <Level1>Clustering</Level1>
         <Level2>setup</Level2>
      </Keyword>
      <Keyword type="header" order="d1e501442">
         <Level1>Subcontracting</Level1>
         <Level2>setup</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>You can set up the subcontracting functionality in the way that
		best suits the requirements of your organization. The following guidelines and
		examples show how subcontracting can fit in with various business
		scenarios.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>General guidelines</SectionTitle>
      <Paragraph>You can use freight orders for either freight order line
		clustering or load building. If load building is enabled for a freight order,
		the freight order cannot be used for freight order line clustering.
		Alternately, a freight order for which load building is disabled can only be
		used for freight order line clustering. If you use freight order line
		clustering for all freight orders, you cannot use load building. Loads created
		using the <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> load building functionality can be subcontracted. You can print subcontracting
		instructions for loads if the load status ranges from Actual to Completed.</Paragraph>
      <List>
         <ListIntro>The following are the basic ways in which you can set up
		  freight order subcontracting. The scenarios discussed later show how you can
		  fine-tune the setup to meet the requirements of specific business scenarios.</ListIntro>
         <ListItemHead>Use freight order line clustering for all freight
		  orders</ListItemHead>
         <ListItem>If you set up subcontracting in this way, load planning is
		  disabled for all freight orders, therefore, you can only subcontract clustered,
		  unplanned freight orders.</ListItem>
         <ListItemHead>Use freight order line clustering for freight orders with
		  particular properties</ListItemHead>
         <ListItem>For example, you can contract out transport planning and
		  execution for freight orders that require special transport types or transport
		  conditions. For these freight orders, load building is disabled. This means,
		  that for other freight orders you can use load building and subcontract the
		  planned loads.</ListItem>
         <ListItemHead>Use subcontracting for planned loads only</ListItemHead>
         <ListItem>As a result, freight order clustering is disabled for all
		  freight orders. You can only subcontract planned loads.</ListItem>
         <ListItemHead>No subcontracting</ListItemHead>
         <ListItem>You enable load building for all freight orders, but do not use
		  the option to print subcontracting instructions for the planned
		  loads.</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Scenarios</SectionTitle>
      <Paragraph>The following scenarios describe how you can set up freight
		order subcontracting for shippers who do not use transport planning and
		shippers who plan part of their goods transports themselves.</Paragraph>
      <GeneralSection>
         <SectionTitle>The shipper does not use transport planning</SectionTitle>
         <Paragraph>In general, you can distinguish the following business
		  scenarios for shippers who do not use transport planning. Each of these
		  scenarios has its own setup requirements.</Paragraph>
         <GeneralSection>
            <SectionTitle>The shipper works with one carrier or logistics provider</SectionTitle>
            <Paragraph>The shipper is not involved in the planning and execution of
			 transport. For transport planning and execution, the shipper has a contract or
			 partnership with a single carrier or logistic service provider, who handles all
			 his transport related requirements.</Paragraph>
            <Paragraph>For this scenario, you can, for example, clear the <GUIRef href="/baanerp/fm/fmd/fmfmd0165m000#fmfmd065.ldpl" role="manual">Load Planning</GUIRef> check box for the freight order types
			 that you define to make all freight orders available for freight order
			 subcontracting. Because only one carrier exists to whom freight orders are
			 subcontracted, carrier selection by ERP Enterprise is not required. For subcontracting
			 purposes, you only need to maintain one carrier.</Paragraph>
            <Paragraph>You can also consider defining a default carrier in the <GUIRef href="/baanerp/fm/foc/fmfoc0100m000" role="session">Freight Order Control Parameters (fmfoc0100m000)</GUIRef> session, which will be the default
			 carrier for all new freight orders, or define a default carrier for the freight
			 order types that you define.</Paragraph>
            <Paragraph>If freight cost calculation and carrier invoice matching is
			 not required, you can clear the <GUIRef href="/baanerp/fm/frc/fmfrc0100m000#fmfrc000.cost" role="manual">Transport Costing</GUIRef> check box in the <GUIRef href="/baanerp/fm/frc/fmfrc0100m000" role="session">Freight Rates and Costs Parameters (fmfrc0100m000)</GUIRef> session, and you do not have to
			 maintain carrier rate books in the <GUIRef href="/baanerp/td/pcg" role="module">Pricing</GUIRef> module of <GUIRef href="/baanerp/td" role="package">Order Management</GUIRef>.</Paragraph>
         </GeneralSection>
         <GeneralSection>
            <SectionTitle>The shipper selects from a list of preferred carriers</SectionTitle>
            <Paragraph>Again, the shipper is not involved in the planning and
			 execution of transportation but, to efficiently subcontract freight orders, the
			 shipper wants to make a selection from a list of carriers to find the most
			 suitable and cheapest carrier. In such cases, the shipper must make an estimate
			 of the freight costs prior to transportation and check the carrier’s invoice.
			 This will help the shipper to keep a tab on freight costs and the degree of
			 efficiency with which transport is carried out.</Paragraph>
            <Paragraph>For this scenario, you can also clear the <GUIRef href="/baanerp/fm/fmd/fmfmd0165m000#fmfmd065.ldpl" role="manual">Load Planning</GUIRef> check box for the freight order types
			 that you define to make all freight orders available for freight order
			 subcontracting. Because carrier selection and freight cost calculation are
			 required, you must maintain a list of suitable carriers and carrier rate books
			 in the <GUIRef href="/baanerp/td/pcg" role="module">Pricing</GUIRef> module of <GUIRef href="/baanerp/td" role="package">Order Management</GUIRef>.</Paragraph>
         </GeneralSection>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>The shippers plan part of their transports
		  themselves</SectionTitle>
         <Paragraph>For shippers who plan part of their goods transports, you can
		  distinguish the following business scenarios. As in the previous scenarios,
		  these scenarios have a number of specific setup requirements.</Paragraph>
         <GeneralSection>
            <SectionTitle>The shippers plan regular transports, but subcontract
			 transport planning of exceptional transport orders to a fixed
			 carrier</SectionTitle>
            <Paragraph>The shippers plan most of the transport activities
			 themselves, possibly because transportation is carried out by his own fleet or
			 dedicated carrier, or because they simply want to be in complete control of the
			 planning and execution of regular transport activities, most likely related to
			 the shippers' core business. The more exceptional transport activities are not
			 included in the transport planning, but are subcontracted as freight orders to
			 a fixed carrier, parcel delivery company, or LSP. Freight cost estimation and
			 invoice matching of the subcontracted orders are required.</Paragraph>
            <Paragraph>In this environment, only particular types of goods, that
			 most likely require special transport conditions or special means of transport,
			 are subcontracted to a fixed carrier. This means that freight orders on which
			 such types of goods are listed must be available for subcontracting. To
			 accomplish this, you can define transport means groups or transport types for
			 which you clear the <GUIRef href="/baanerp/fm/fmd/fmfmd0165m000#fmfmd065.ldpl" role="manual">Load Planning</GUIRef> check box. You can add these transport
			 types and/or transport means groups to items in the <GUIRef href="/baanerp/fm/fmd/fmfmd1100m000" role="session">Items - Freight Management (fmfmd1100m000)</GUIRef> session.</Paragraph>
         </GeneralSection>
         <GeneralSection>
            <SectionTitle>The shippers select the carriers</SectionTitle>
            <Paragraph>The shippers plan, and possibly carry out, regular
			 transport, but exceptional transport orders are subcontracted to different
			 carriers, which are selected on the basis of specific criteria. Freight cost
			 estimation and invoice matching of the subcontracted orders is
			 required.</Paragraph>
            <Paragraph>The subcontracting setup for this environment is much the
			 same as for the previous environment. The main difference is that the carrier
			 who is to carry out the transport planning and the transport is selected from a
			 list. Therefore, defining transport means groups and transport types for which
			 the <GUIRef href="/baanerp/fm/fmd/fmfmd0165m000#fmfmd065.ldpl" role="manual">Load Planning</GUIRef> check box is cleared will also do the
			 job in this scenario. To enable carrier selection freight cost estimation, and
			 invoice matching, carrier rate maintenance for the carriers maintained for
			 subcontracting is required.</Paragraph>
         </GeneralSection>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/000054" role="manual">Subcontracting</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>