Modeling OSP Scenario with Customer-Supplied Components – Guidance Needed
Summary:
We are evaluating solution options for a client scenario involving Outside Processing (OSP). In this case, the finished good (FG) is assembled and shipped by the supplier, but the client sends two critical components to the supplier for assembly.
We initially recommended Contract Manufacturing, but the client is not inclined to pursue that option due to internal constraints.
Given this, we are exploring how to model this scenario using OSP:
- How can we handle the shipment of the two critical components from the client to the supplier within the OSP framework?
- What are the costing implications we need to be aware of
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