The ETO to CTO Journey

Configure-to-order (CTO) is the method of “effectively delaying a differentiated product for a specific customer to the last possible point in the supply network (The Push-Pull Point).” With CTO, modular building blocks are specified in advance with which an “infinite” number of variants of a product can be configured. The building blocks (or subassemblies) provide the opportunity to design a customer-specific product that is “known” for the entire primary process. In addition to peace of mind and predictability, this provides financial gain through 1) fast follow-up of customer requests due to less pre-engineering and prices being known, 2) clear, error-free information flow because it is predefined, 3) no more need for order engineering, 4) scale advantage with suppliers, 5) immediate use of CAM programs, 6) ability to produce parts “anonymously” in batches during quiet periods, and 7) the opportunity to use the space created by this methodology to further optimize products and processes and to tap into new innovations.