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Customer Order Decoupling Point is a Term describing the process or node in the supply chain network where the activities are no longer driven by individual orders. Managing Customer Order Decoupling Points is a Best Practice.
Understanding the Customer Order Decoupling Point of a supply chain is important for Supply Chain Management processes. The behavior of processes upstream and downstram of the Customer Order Decoupling Point is quite different:
The OpenReference Supply Chain Operations Domain recognizes these differences in behavior at level-2: Make-to-Stock (MTS), Make-to-Order (MTO, CTO, ATO, PTO), and Engineer-to-Order (ETO). Customer Order Decoupling Points typically resides in the first MTS process (when looking upstream):
Contents
Strategy |
Supplier | Receive, Store | Pre-build/ Produce | Assemble/ Finish | Package, Store | Pick, Load, Ship | Invoice | Customer |
VMI (MTS) |
D* |
S1 |
M1 |
M1 |
M1 |
D1 |
D1 |
S* |
MTS |
D* |
S1 |
M1 |
M1 |
M1 |
D1 |
D1 |
S* |
PTO (MTO) |
D* |
S1 |
M1 |
M1 |
M2 |
D2 |
D2 |
S* |
ATO (MTO) |
D* |
S1 |
M1 |
M2 |
M2 |
D2 |
D2 |
S* |
CTO (MTO) |
D* |
S1 |
M2 |
M2 |
M2 |
D2 |
D2 |
S* |
D* |
S2 | |||||||
Supplier | Source | Make | Deliver | Customer |
For Engineer-to-Order replace Customer Order with Customer Intent.