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Study Subcontracting lecture notes PDF with supply chain management definitions and explanation to study What is Subcontracting?. Study subcontracting explanation with SCM terms to review supply chain management course for online MBA programs.

Subcontracting Definition:

  • When used in medium-term capacity management, it indicates the temporary use of other operations to perform some tasks, or even produce whole products or services, during times of high demand.

    Operations Management by Nigel Slack, Alistair Brandon-Jones, Robert Johnston



Subcontracting Notes:

Subcontracting is the act of doling out, or redistributing, some portion of the commitments and assignments under an agreement to another gathering known as a subcontractor. Subcontracting is particularly predominant in regions where complex undertakings are the standard, for example, development and data innovation. Subcontractors are procured by the task's general temporary worker, who keeps on having by and large duty regarding venture fruition and execution inside its stipulated parameters and due dates. A subcontractor is a sort of contractual worker who works in a specific territory and could be a specialist, self employed entity or merchant. While the temporary worker keeps up associations with customers (e.g., company or government), the subcontractor works with a contractual worker, giving their specific range of abilities in return for a legally binding expense. The subcontracting individual or organization reports to the essential contractual worker, who is in charge of dealing with the contracted work from inception to finish.

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