Material outside the factory is easy to forget
Most small manufacturers send some work outside: powder coating, plating, laser cutting, machining or printing. Material leaves the factory, and from that moment it is out of sight. If nobody tracks it, pieces come back short, deliveries slip and nobody is sure what is still at the vendor.
Job-work tracking is about knowing, at any time, what is out, with whom and since when.
This guide covers what to record when material goes out, how to handle partial returns and rejections, and how to keep vendor bills in line with what actually came back.
Record every dispatch to a vendor
Every time material goes out for job work, create a record. It does not need to be long, but it must be complete.
- Vendor name
- Material or part, with quantity and unit
- Process to be done, such as coating or cutting
- Date sent and expected return date
- Production order the work belongs to
Record returns, including partial ones
Vendors often return work in parts. Record each return with date and quantity. Check the quantity and quality when it arrives, and note rejections separately. If 120 pieces went out and 80 came back, the record should clearly show 40 still pending.
Follow up by days pending
Every few days, look at pending job work sorted by how long it has been out. Call vendors who are past the expected date. Early follow-up gives you time to adjust production or inform the customer. Waiting until the delivery date leaves no room.
Agree on losses and rejections
Some material loss is normal in certain processes, such as cutting or machining. Agree with each vendor on what is acceptable and how rejections will be handled. Record these terms so that when pieces come back short, the conversation is based on what was agreed, not on memory.
Link job work to vendor bills
When the vendor sends a bill, check it against the quantities actually returned and accepted. Post the bill to the vendor's ledger. Paying for quantities that never came back, or for rejected pieces, is a common and avoidable loss.
If you are the job-work unit
Job-work units face the same problem from the other side. Clients send material to you, and you must account for every piece. Record what you receive from each client, what you process and what you return. When a client asks about their material, you can answer from records rather than searching the floor.
Common mistakes
- Sending material out on a loose challan with no central record
- Not recording partial returns
- No expected return date, so follow-up never happens
- Paying vendor bills without checking returned quantities
- No agreement on acceptable loss
Use a simple numbering system
Give each job-work dispatch a number and write it on the challan and on the material bundle. When pieces return, the vendor quotes the same number. This avoids confusion when several lots of similar parts are out with the same vendor at the same time.
Keep a copy of every challan, signed by the vendor's person who received the material. If a dispute comes up months later, the signed challan settles it quickly.
Plan job work into production dates
When a production order needs coating or cutting outside, include the vendor's usual turnaround in your target date. If a vendor normally takes four days, do not promise the customer delivery in three. Tracking past turnaround times for each vendor makes these promises more realistic. Over time you will also see which vendors are reliable for urgent work and which are better kept for routine jobs.
Review vendors every quarter
Every few months, look at each job-work vendor's record: how often they were late, how many pieces were rejected, and how quickly bills matched returns. Share the findings with vendors. Good vendors appreciate the feedback, and it gives you a fair basis for deciding where to send future work.
How Nirmaanam helps
Nirmaanam has job-work tracking built in. You record material sent to each vendor and what comes back, including partial returns, and see pending work by vendor and by days.
Vendor bills post to purchase and vendor ledgers, and owner reports show pending job work alongside production orders. It works for job-work units tracking client material too. For a demo, message +91 95116 38160.
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