Configure-to-Order

With a Configure-to-Order manufacturing environment, your customer has the ability to define the component make-up or configuration of a product at the very moment they order it. The options and features available are dependent on the logic, rules and options already selected. The vendor subsequently builds that configuration dynamically upon receipt of order.

The product can be configured with a number of features. Each feature may have a number of applicable options. Rules determine the compatibility of features and options. Due to the fact that it is difficult to predict what a customer may want, the final assembly is usually not held in stock. It is impractical to have inventory SKU's representing all of the possible combinations.

Consider the following key areas and issues:

• Quoting & Sales - Quick, accurate configuration based on user defined rules and options, cost, price and delivery; providing detailed sales orders highlighting configuration choices; ability to create item numbers on the fly to support the configuration; no need to involve engineering in the ongoing quoting process.
• Planning & Purchasing - Planning that reflects choices on the configuration; planning for final assembly driven by sales orders; lower level items managed to stocking constraints; and ability to purchase to stock.
• Production – Need a detailed production plan supporting configuration choices; visibility to estimate vs. cost; visibility to supply and demand; and produce on budget.
• Scheduling - Reduce work in process; and comparison of scenarios; need visibility to capacity and materials.
• Invoicing – Need detailed invoice highlighting selected configuration options; ability to accept deposits, pre-invoice and perform milestone billing.

The INDUSTRIOS team specializes in teaching you how to define your configurations so that the questions a sales person asks during the quotation process are supported by the production job with the correct BOM and routing steps along with the associated costs. You may have individual plans to construct variations of an item you sell but pulling them together to have a configurable plan takes a studied approach, we can help you through this process. It is a key success factor in a configure-to-order environment.

Pratt and Larson Ceramics Karen Roberts, Controller "INDUSTRIOS Inventory has had an impact in multiple areas. The biggest change is the visibility to inventory at the bin level. It enables us to quickly locate products for customer pick up and confirm inventory through cycle counts quickly and accurately. It is so easy to use."