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Order fulfillment

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Order fulfillment :
 It’s responsive to customer orders. Has below function of the degree of customization

Engineer-to-Order (ETO).
o
o
o

Make-to-Order (MTO).
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o

a standard product design is used, but final product build based on final customer’s
specifications like aircraft manufacturers such as Boeing.
Fulfilment time is generally less than with ETO fulfilment, but still fairly long.
Assemble-to-Order (ATO).
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o

products are designed and built according to customer specifications.
This approach is frequently used for large-scale construction projects, custom
homebuilding, home remodelling, and for products made in job shops.
Lengthy delivery time due to nature of the project, and teh presence of other jobs
ahead of the new one.
products are assembled to customer specifications from a stock of standard and
modular components like Computer manufacturers such as Dell operate using this
approach.
Fulfilment times are fairly short like week or less.
Make-to-Stock (MTS).
o
o
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production is based on a forecast, and products are sold to the customer from
finished goods stock like departmental stores and supermarkets.
The order fulfilment time is immediate.
A variation of this is e-commerce; although goods have already been produced,
there is a lag in fulfilment to allow for shipping.
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