Dropship to subcontractor

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Introduction

Dropshipping to a subcontractor in Odoo is a smart way to streamline manufacturing.
Instead of sending components to your warehouse and then on to your subcontractor, you can have suppliers send them directly. This cuts out extra handling, reduces delivery times, and helps you keep customers happy.

In Odoo, the Dropship Subcontractor on Order route ensures that when you confirm a purchase order (PO) for a subcontracted product, the necessary components are automatically purchased from your supplier and shipped straight to the subcontractor. The subcontractor then manufactures the finished goods and either:

Sends them back to you, or
Ships them directly to your customer (if combined with the standard Dropship route).

Step-by-Step Instructions

1. Enable Subcontracting in Odoo

Go to Manufacturing → Configuration → Settings.
Under Operations, tick Subcontracting.

2. Configure the Subcontracted Product

Go to Inventory → Products → Products and open or create your subcontracted product.
On the Purchase tab:
1. Add your subcontractor as a vendor.
2. Enter the agreed price.
On the Inventory tab:
1. Select Buy if the subcontractor ships the product back to you.
2. Select Replenish on Order (MTO) to automatically create a PO when a Sales Order (SO) is confirmed.
3. If the subcontractor sends the product directly to the customer, select Dropship

3. Configure the Bill of Materials (BoM)

Open the product’s page and click the Bill of Materials smart button.
In the BoM Type field, select Subcontracting.
Add your subcontractor(s) in the Subcontractors
List all required components in the Components tab with correct quantities.

4. Configure Components for Dropship to Subcontractor

For each component in the BoM:

Open the component product page.
On the Purchase tab, add the vendor supplying the part.
On the Inventory tab, select Dropship Subcontractor on Order.

Repeat this for all components that should be sent directly to the subcontractor.

5. Run the Dropship to Subcontractor Workflow

The workflow typically looks like this:

Create a Sales Order for the subcontracted product (if fulfilling a customer order).
Odoo creates a Subcontractor PO.
Confirm the PO — Odoo creates an RfQ for the components.

4. Confirm the RfQ — Odoo creates a Dropship Subcontractor order.

Supplier ships components directly to the subcontractor.
Subcontractor manufactures and ships the finished product to you (or directly to the customer if dropshipping).
Validate receipts or delivery orders in Odoo.

Tips

Know the difference:
- Dropship → supplier sends goods directly to your customer.
- Dropship Subcontractor → supplier sends components directly to subcontractor.
Combine routes if you want components sent to subcontractor and final product shipped straight to the customer.
Always double-check BoM and vendor details incorrect setup can break the automation.
Keep communication clear with suppliers and subcontractors to avoid delivery delays.

Dropship to subcontractor

Introduction