RELATED WEBINAR: Product Configurator
Configure-to-Order (CTO) manufacturing balances customization with efficiency.
In this type of manufacturing, customers specify particular features from a selection of pre-configured options, and the manufacturer then constructs the product to match the selected details. CTO manufacturing merges both Make-to-Stock (MTS) and Make-to-Order (MTO) processes while reducing the lead times of Engineer-to-Order (ETO) manufacturing, to create a product tailored to a customer’s specific needs.
For each CTO order, manufacturing instructions and component lists vary, presenting manufacturers with both opportunities and challenges that necessitate the right Enterprise Resource Planning (ERP) solution.
What Is CTO Manufacturing?
CTO manufacturing is often contrasted with Engineer-to-Order (ETO) manufacturing, where each product is designed and engineered from scratch based on individual customer specifications, leading to longer lead times and a more complex production process. CTO manufacturing strikes a middle ground, offering customization within a framework of predefined configurations and components. CTO manufacturing provides customers with personalized products without sacrificing efficiency.
Several features set CTO manufacturing apart from other types of manufacturing:
Customer-Centric Customization: CTO products are crafted to meet the needs of individual customers, providing a high degree of personalization that goes beyond what is typically seen in traditional manufacturing.
Hybrid Production Model: CTO manufacturing intertwines Make-to-Stock (MTS) and Make-to-Order (MTO) processes, as a set of components are manufactured for stock, while the finished goods are assembled to order.
Variable Manufacturing Instructions: Because every order comes with unique specifications, CTO manufacturing requires a production system that can easily adjust to different needs, ensuring each product meets customer expectations.
Expertise in Assembling Components: CTO relies on assembling products from pre-made components, striking a balance between customization and efficient assembly. This requires carefully managed inventory and efficient production processes.
Genius ERP Understands CTO Manufacturing
Genius ERP streamlines the complex processes involved in CTO manufacturing, ensuring efficient coordination of resources and production schedules.
Genius ERP helps CTO manufacturers by managing product configurations, optimizing inventory levels and generating accurate bills of materials based on selected options. Our robust scheduling features and production monitoring capabilities ensure that production is always on track and that customized products are assembled quickly and accurately to meet customer needs.
Take a Virtual Tour of a manufacturing shop to show you how Genius ERP is built to handle CTO manufacturing.
A powerful product configurator tool is essential for CTO manufacturers, as it allows users to define and manage product attributes, features and specifications, enabling easy customization based on customer requirements.
Genius ERP’s intuitive and easy-to-use product configurator tool simplifies the customization process, ensuring accurate and consistent product configurations for each order. Without the product configurator, CTO manufacturers must rely on spreadsheets to configure a product and create a BOM, or bill of manufacturing. Not only does Genius automate this time-consuming process, but we also include built-in tools that automatically provide manufacturers with real-time information on inventory levels, plus what needs to be purchased to complete the build.
An MRP system is vital to CTO manufacturers for efficient resource planning. It helps manage materials, schedule production, and optimize resources based on the specific requirements of each CTO order.
CTO operations involve a dynamic interplay of customized product configurations, and an MRP system is the cornerstone of resource planning. Genius ERP’s resource planning features assist manufacturers in determining the exact materials, components and resources needed for each unique order, facilitating optimal inventory management and reducing the risk of shortages or excess stock.
Genius ERP improves production planning and scheduling for CTO manufacturers. With the ability to forecast demand based on order specifics, manufacturers can optimize the allocation of resources, plan production timelines effectively and seamlessly coordinate various production stages. This results in minimized lead times, improved order fulfillment, and increased operational efficiency. The precision and real-time insights provided by Genius ERP empower CTO manufacturers to navigate the intricacies of customized production and ensure the accurate and timely fulfillment of each order.
Comprehensive inventory management functionalities are crucial for handling the unique challenges of CTO manufacturing, where a balance between stocked and order-specific components is necessary.
Genius ERP empowers CTO manufacturers with robust inventory control functionalities. Providing real-time visibility into inventory levels, Genius ERP helps manufacturers maintain optimal stock levels for both standard components and those ordered for specific configurations. This, in turn, prevents production delays caused by shortages or excess stock, enhances operational efficiency and ensures that CTO manufacturers can meet customer demands with precision.
Genius ERP includes comprehensive tools that align inventory management with the unique requirements of Configure-to-Order manufacturing, offering a centralized platform for accurate tracking, scheduling and strategic planning.
Increasing Efficiency with Genius ERP
Selecting the right ERP system is crucial for CTO manufacturers as it impacts their operational efficiency and overall business success. Choosing an ERP solution tailored to the specific needs of CTO manufacturers streamlines complex processes, optimizes operational efficiency, controls cost, and helps to deliver exceptional customer satisfaction.
Genius ERP’s user-friendly solution consolidates various business functions into one integrated system, eliminating the reliance on manual processes and disjointed information systems. With Genius ERP, CTO manufacturers can confidently address the complexities of their industry, moving seamlessly from order configuration to final product assembly.
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