This path is designed for businesses that plan to outsource all or some of the production of their inventory, but will likely track the materials used during manufacturing.

Getting Started

Below are a few of the things we recommend completing (or looking into) to ensure a positive experience as an outsourcer using Katana.

Step 1: Set up initial settings

Clicking the name in the top right shows a dropdown where you can access settings

Before adding data or testing workflows, configure these key settings so Katana runs smoothly from the start.

General settings: Make sure your base currency is accurate and define default lead times for sales and purchase orders.
- Managing base currency inside Katana | Katana

Tax rates: If all sales orders come from ecommerce (e.g. Shopify), tax rates sync automatically. If you create sales orders manually, set up and assign tax rates in Settings.
- Tax rates guide

Locations: Add inventory locations and create a separate location for each contractor to track materials and finished goods;
- Basics of locations

Barcodes (optional): Enable barcodes if you plan to scan items for receiving, production, or inventory counts.
- Basics of barcodes

Step 2: Item setup

Even when outsourcing, Katana can track full product costs, combining your contractor's price and your ingredient costs. This ensures you have accurate costs and inventory control.

Materials: Add the raw materials you purchase and supply to your contractor
- Create manually | Import guide

Products: Enable both Make and Buy on the product card under Usability. Add the per-unit cost charged by your contractor. Katana calculates total product cost as purchase price + ingredient cost.
- Create manually | Import | Shopify, WooCommerce, BigCommerce

Product Recipes (BOMs): Define the ingredients your contractor will use to make the products, or in case you do some in-house manufacturing.
- Create manually | Copy a recipe to/from another product | Import
Production operations: If doing some work in-house, define your steps before the outsourced process.
- Create manually | Copy operations to/from another product | Import

Tip: You can adjust ingredients for specific outsourced POs directly from the order if they differ from the default recipe.

Step 3: Try outsourced workflows

Outsourced manufacturing:
You manage raw materials, send them to your contractor, and use an outsourced purchase order (OPO) to track the manufacturing process and receive finished goods back.

Try this: create a product marked I make and I buy → Add ingredients and default purchase price → Go to global + → Create an Outsourced Purchase Order (OPO) → Review ingredient availability in the Track ingredients tab → Send ingredients to your contractor’s location via PO - Receive the OPO to update stock and cost

Learn more about fully outsourced workflow

How to create an OPO

Managing OPO ingredient costs
Katana calculates outsourced product cost from the contractor’s fee, and ingredient cost based on average inventory cost in contractor location

Try this: Pick/create a product with a BOM → Create an OPO → Review ingredient costs in Track ingredients tab → Try modifying ingredients and see how the unit cost updates

Learn more about OPO product costs

Partially outsourced manufacturing
You handle some production steps in-house, while a contractor completes the remaining operations. This setup is ideal when certain tasks (like coating, finishing, or assembly) are better suited to external partners.

Learn more about partial outsourcing

Step 4: Integrations

Connect Katana to the rest of your tech stack to automate order flow, sync inventory, and reduce manual work.

E-commerce: Automatically sync sales orders and stock.

Marketplace channels: Route orders from those marketplaces into Katana.
- via Extensiv: eBay, Amazon FBA, Amazon (Seller-fulfilled), Walmart

Accounting: Sync invoices, bills, and financial data
- QuickBooks Online
- Xero

CRM: turn deals into Katana SOs and sync inventory data to streamline sales and fulfillment
- HubSpot
Shipping platforms: Katana supports a range of shipping workflows, from ecommerce orders fulfilled via Shopify or WooCommerce, to B2B or hybrid operations.
- Shipping workflows
- 3rd party integrations

Step 5: Add your inventory

Depending on your process, choose the best approach:

E-commerce import: Sync stock automatically when connecting Shopify, WooCommerce, or BigCommerce.
Bulk import: Bulk upload stock levels and values using a template.
Manual entry: Add stock directly via stock adjustments, ideal for small updates.
Transfer raw materials to contractor location via Stock Transfer or PO

Step 6: Count your stock and go live!

Once your inventory is set up, use stocktake to verify actual stock levels and correct discrepancies. When you're done, Katana will automatically create a stock adjustment. You can count items manually or use barcode scanning and track differences between expected and counted stock.

Performing a stocktake

Now that your core setup is complete, use our post-launch guide to review key areas like inventory accuracy, workflow performance, and team usage.