Manufacturing a single SKU in multiple countries

  • Manufacturing a single SKU in multiple countries

    Posted by ken Platt on December 7, 2023 at 9:56 am

    As many of you aware due to the political climate, US companies are looking to move manufacturing out of China to safer countries or at a minimum have an alternative manufacturer in place. I was wondering if others are seeing this change within their organization because we cannot find a way to setup our SKU’s in D365 to identify multiple countries of Origin. If you have a suggestion or have solved this issue within your organization, please reach out.

    Drew Lencsak replied 4 months ago 4 Members · 3 Replies
  • 3 Replies
  • Zvika Rimalt

    Member
    December 12, 2023 at 2:22 pm
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    I am not sure I understand what is it that you are trying to do? maybe an example?
    Are you trying to have 1 product, flagged to be made in multiple countries?

    Typically, if you have manufacturing facilities in different countries, each country’s facility will be in a separate D365 company, and as such you can flag the country where inventory is made.

  • Ajay Dua

    Member
    December 18, 2023 at 12:19 pm
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    This has always been a challenge where you can make the same SKU in multiple countries, we helped a customer by moving the actual country of origin to batch attributes. There are many costing implications with this scenario that you need to think about, cost in China for SKU might be very different than cost in Vietnam and if you are on standard cost, you might need to account for those differences.

  • Drew Lencsak

    Member
    January 4, 2024 at 12:37 pm
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    Correct, out of the box, there is one Country of origin field on a released product linked to the Foreign trade setup in the Tax module. If using batch controlled items, you do have the opportunity to record 2 Vendor batch COOs. However, if you are manufacturing the goods in multiple countries and you move a unit from where it is manufactured to another country where it is distributed, and it is the same Released product, you are correct that you would not individually have the COO tracked on any given SKU worldwide when it could have been manufactured and distributed in one of many countries. You can sort of make it work but it is not robust enough often for companies. The COO is a value of the stock/inventory itself, not the Released product/SKU number. The previous reply about batch attributes is a common approach I have seen to handle this along with similar workarounds or added fields to track COO at the batch level

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