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Home / Outsourced Production Inventory Management

Stay in control when production is outsourced

Track materials sent to manufacturers, monitor production orders, and receive finished goods with full traceability. Outsource production without losing control of your inventory.


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Real-time view, no matter where

Know exactly what materials you’ve sent to manufacturers, when they shipped, and when they arrived. Full visibility into outbound shipments.

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Track what comes back

Receive finished goods with full documentation—quantities, batch numbers, and automatic inventory updates.

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Maintain the chain of custody

Full traceability from raw materials through external production to finished goods in your warehouse.

Bridge the visibility gap in outsourced production

When you manufacture in-house, you see everything. Outsourcing creates blind spots: materials leave your control, production happens somewhere else, and you’re left tracking status through emails and spreadsheets.

Katana gives you a system for managing what you can control. Track materials shipped to manufacturers. Receive finished goods with proper documentation. Your inventory stays accurate even when production happens in facilities you don’t operate.

Katana inventory intelligence showing missing or excess stock alert, suggested order dates, and make-to-order options to prevent overstocking and improve forecasting

Know what’s at your manufacturer

When you send materials to an external manufacturer, you need visibility. Katana tracks everything from shipment to receipt confirmation.

Material tracking capabilities

  • Log materials sent to external manufacturers with quantities and dates
  • Track shipments in transit to production partners
  • Confirm manufacturer receipt and flag discrepancies
  • Monitor material consumption against expected yields
  • Keep accurate across your warehouse and manufacturer locations
person looking through a list of purchase orders on a tablet computer

Monitor outsourced orders from placement to receipt

Katana’s outsourced purchase orders work differently from standard supplier orders—tracking both the materials you provide and the finished goods you expect back.

Production order features

  • Outsourced POs: Specify materials provided and finished goods expected
  • Expected dates: Set completion dates and track against actuals
  • Partial receipts: Receive shipments in batches and track remaining
  • Cost calculation: Include materials, manufacturing fees, and logistics
  • Alerts: get notified when orders are due or delayed

Receive finished goods with confidence

When products come back from your manufacturer, proper receiving workflows ensure accuracy and maintain traceability.

Receiving workflow features

  • Log received quantities against original orders
  • Capture batch and lot numbers for traceability
  • Update inventory automatically upon receipt verification
  • Maintain documentation for compliance requirements
  • Integrate with barcode scanning to speed up receiving and reduce errors.

Integrate your tech stack and
simplify your operations

Build a system tailored to your workflow, with Katana unifying inventory across channels, ensuring accuracy, and automating the tasks that keep operations moving.


Stay on top of every order and stock movement with live updates across sales, inventory, and production


Save hours by automating order fulfillment in Katana and extending workflows with integrations


Unlock full customization with Katana’s robust API, connecting every tool to your unique workflows

Tools to success

Tools for outsourced production

Everything you need to manage inventory when manufacturing happens externally

Outsourced purchase orders

Create orders that distinguish between materials you’re providing and finished goods you expect back. Distinct from standard supplier purchases.

Material
tracking

Log shipments to manufacturers, confirm receipt, and maintain visibility into materials at external facilities with multi-location tracking.

Multi-location inventory

Track stock across your warehouses, in transit, and at manufacturer locations in a unified view.

Bill of materials (BOM)

Maintain BOMs for externally-produced products to plan material requirements and calculate accurate product costs.

Batch & lot traceability

Track batch numbers from raw materials through external production to finished goods receipt with full traceability.

Receiving workflows

Verify quantities, capture batch information, flag discrepancies, and update inventory upon receipt.

Lead time planning

Set accurate lead times for outsourced production to improve forecasting and prevent stockouts.

Cost calculation

Calculate true product costs including materials, manufacturing fees, shipping, and handling for accurate pricing.

Sales channel sync

Keep available inventory accurate across Shopify, Amazon, and all your channels accounting for stock in production externally.


Get started with Katana

Create your account and start exploring Katana with the Free Plan, no credit card required, or book a personalized demo to see how Katana can help your business.

All Katana features

All Katana features

With the right software and workflows, it will feel like your products are selling themselves. Here are just some of Katana’s features that will make that feeling achievable

Purchasing

Maintain a perfect balance between supply and demand.

Order management

Manage orders seamlessly across all of your channels.

Warehousing

Reliably move stock in and out of warehouses.

Manufacturing

See, control and deliver every step of production on time.

See all features

Everything you need to sync inventory and track orders

Frequently asked questions

Katana’s outsourced purchase orders let you log materials sent to manufacturers. When you create an outsourced PO, you specify what materials you’re providing and what finished goods you expect back. Materials are tracked as “at manufacturer” in your multi-location inventory until finished goods are received.

Yes. Many Katana customers don’t manufacture anything themselves. Katana works as a complete inventory and order management system whether you handle production in-house, outsource everything, or use a mix of both approaches.

Katana’s batch and lot tracking works throughout your supply chain. You can trace which material batches were sent to manufacturers, log production batch information from your partners, and connect finished goods batches to their source materials—critical for food safety, cosmetics compliance, and recall readiness.

Katana supports multiple manufacturers as separate suppliers. Create outsourced purchase orders for each, track materials and finished goods independently, and see consolidated inventory across all partners and locations.

Katana tracks what you send and what comes back. For real-time status within their facility, you’d rely on updates from your manufacturing partner, which you can log in Katana to keep your records current. Consider establishing regular check-ins with your contract manufacturers.

Contract Manufacturing focuses on the business model of working with CMs and co-packers. This page focuses on the operational workflows—tracking materials, managing orders, and receiving finished goods. Both cover similar Katana features from different angles to help you find the information most relevant to your search.

Get visibility over your sales and stock

Wave goodbye to uncertainty with Katana Cloud Inventory — AI-powered for total inventory control