What is Configure to order (CTO) ?
It is a method of manufacturing which allows you, or your customer, to choose a base product at the very moment of ordering and then configure all the variable parameters (features) associated with that product from defined/available options.
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/order receiving company subsequently builds that configuration dynamically upon receipt of the order. The ability of the vendor to make and deliver products customized to specific customer needs offers a powerful competitive edge over competitors.
CTO is an environment in which the product or service is assembled or kitted on receipt of the sales order. Oracle EBS supports the Configure to Order environment with a range of features in order entry, demand forecasting, master scheduling, production, shipping, and financial accounting.
Configure to Order includes Pick-to-Order (PTO) and Assemble-to-Order (ATO) items, models, and hybrids. It supports building configurations using other configurations as sub-assemblies (multi-level configure-to-order), internal and external sourcing of ATO models at any level in the BOM and supports multi-level PTO/ATO hybrids.