Difference between PTO, ATO and
CTO
PTO - Pick to Order environment
where the goods are manufactured based on forecasted demand. It’s a fixed
configuration of product available which can be order and no changes can be
done in this configuration.
ATO: - Assemble to order environment is one in
which the product or service is "assembled on receipt of the sales order". The parts are kept in stock but not manufactured until
the actual order is created. Receipt of the order initiates assembly of the customized product.
Assemble-to-order is useful where a large number of finished products
can be assembled from common components.
CTO: - Configure to Order is a
method which allows you to configure your final product by select base product. Based on these selections, configurable
items on each quote or order typically generates the "unique product"
configuration and manufacturing routing and/or bill of materials based on various
features and options. Vendor receiving company subsequently builds that
configuration dynamically upon receipt of the order.
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