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Understanding the {{this}} of a supply chain is important for [[SCM]] processes. The behavior of processes upstream and downstram of the {{this}} is quite different:
 
Understanding the {{this}} of a supply chain is important for [[SCM]] processes. The behavior of processes upstream and downstram of the {{this}} is quite different:
* Upstream processes are driven by forecast based planning information, Materials are pushed downstream. Optimization is realized by balancing inventory and capacity.  
+
* Upstream processes are driven by forecast based planning information (blue in the diagram), Materials are pushed downstream. Optimization is realized by balancing inventory and capacity.
* Downstream processes are driven by actual customer orders. Materials are pulled by the order. Optimization is realized by balancing capacity and lead-times.  
+
* Downstream processes are driven by actual customer orders (green in the diagram). Materials are pulled by the order. Optimization is realized by balancing capacity and lead-times.
The {{OR}} [[SCO]] [[Domain]] recognizes these differences in behavior at level-2: [[t:MTS]] ([[t:MTS|MTS]]), [[t:MTO]] ([[t:MTO|MTO]], [[t:CTO|CTO]], [[t:ATO|ATO]], [[t:PTO|PTO]]), and [[t:ETO]] ([[t:ETO|ETO]]). {{this}}s typically resides in the first [[t:MTS|MTS]] process (when looking upstream):
+
The {{OR}} [[SCO]] [[Domain]] recognizes these differences in behavior at level-2: [[t:MTS]] ([[t:MTS|MTS]]), [[t:MTO]] ([[t:MTO|MTO]], [[t:CTO|CTO]], [[t:ATO|ATO]], [[t:PTO|PTO]]), and [[t:ETO]] ([[t:ETO|ETO]]). {{this}}s (white rounded box in the diagram) typically reside in the first [[t:MTS|MTS]] process (when looking upstream):
 +
 
  
 
{| {{wikitable}}  
 
{| {{wikitable}}  
 
|-  
 
|-  
|  
+
| class="blanco top" |
===[[t:SCCS]]===
+
===[[t:SCCS|Strategy]]===
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Supplier
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Supplier
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Receive, Store  
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Receive, Store  
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| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Package, Store
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Package, Store
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Pick, Load, Ship
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Pick, Load, Ship
 +
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Invoice
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Customer
 
| style="padding: 0 8px; text-align: center; border: 1px dashed silver; border-bottom: 0px; vertical-align: bottom;" | Customer
 
|-
 
|-
 
| class="blanco top" |
 
| class="blanco top" |
=== [[t:MTS|MTS]]/[[t:VMI|VMI]] ===
+
=== [[t:VMI|VMI]] ([[t:MTS|MTS]]) ===
  
 
[[t:VMI]]
 
[[t:VMI]]
 
| class="blue top dotmeright" |  
 
| class="blue top dotmeright" |  
 +
=== [[sc:D*|D*]] ===
 
| class="blue top dotmeright" |
 
| class="blue top dotmeright" |
 
===[[sc:S1|S1]]===
 
===[[sc:S1|S1]]===
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| class="blue top dotmeright" |
 
| class="blue top dotmeright" |
 
===[[sc:M1|M1]]===
 
===[[sc:M1|M1]]===
| class="blue top dotmeright" |
+
| class="blue this top dotmeright" |
 +
===[[sc:D1|D1]]===
 +
| class="green top dotmeright" |
 
===[[sc:D1|D1]]===
 
===[[sc:D1|D1]]===
| class="buyer top" |  
+
| class="green top" |  
 +
=== [[sc:S*|S*]] ===
 
|-
 
|-
 
| class="blanco top" |
 
| class="blanco top" |
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[[t:MTS]]
 
[[t:MTS]]
 
| class="blue top dotmeright" |  
 
| class="blue top dotmeright" |  
 +
=== [[sc:D*|D*]] ===
 
| class="blue top dotmeright" |
 
| class="blue top dotmeright" |
 
===[[sc:S1|S1]]===
 
===[[sc:S1|S1]]===
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| class="blue top dotmeright" |
 
| class="blue top dotmeright" |
 
===[[sc:M1|M1]]===
 
===[[sc:M1|M1]]===
| class="blue top dotmeright" |
+
| class="blue this top dotmeright" |
 
===[[sc:M1|M1]]===
 
===[[sc:M1|M1]]===
 
| class="green top dotmeright" |
 
| class="green top dotmeright" |
 
===[[sc:D1|D1]]===
 
===[[sc:D1|D1]]===
| class="buyer top" |  
+
| class="green top dotmeright" |
 +
===[[sc:D1|D1]]===
 +
| class="green top" |
 +
=== [[sc:S*|S*]] ===
 
|-
 
|-
 
| class="blanco top" |
 
| class="blanco top" |
=== [[t:MTO|MTO]]/[[t:PTO|PTO]] ===
+
=== [[t:PTO|PTO]] ([[t:MTO|MTO]]) ===
 
[[t:PTO]]
 
[[t:PTO]]
 
| class="blue top dotmeright" |  
 
| class="blue top dotmeright" |  
 +
=== [[sc:D*|D*]] ===
 
| class="blue top dotmeright" |
 
| class="blue top dotmeright" |
 
===[[sc:S1|S1]]===
 
===[[sc:S1|S1]]===
 
| class="blue top dotmeright" |
 
| class="blue top dotmeright" |
 
===[[sc:M1|M1]]===
 
===[[sc:M1|M1]]===
| class="blue top dotmedright" |
+
| class="blue this top dotmedright" |
 
===[[sc:M1|M1]]===
 
===[[sc:M1|M1]]===
 
| class="green top dotmeright" |
 
| class="green top dotmeright" |
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| class="green top dotmeright" |
 
| class="green top dotmeright" |
 
===[[sc:D2|D2]]===
 
===[[sc:D2|D2]]===
| class="buyer top" |  
+
| class="green top dotmeright" |
 +
===[[sc:D2|D2]]===
 +
| class="green top" |
 +
=== [[sc:S*|S*]] ===
 
|-
 
|-
 
| class="blanco top" |
 
| class="blanco top" |
=== [[t:MTO|MTO]]/[[t:ATO|ATO]] ===
+
=== [[t:ATO|ATO]] ([[t:MTO|MTO]]) ===
 
[[t:ATO]]
 
[[t:ATO]]
 
| class="blue top dotmeright" |  
 
| class="blue top dotmeright" |  
 +
=== [[sc:D*|D*]] ===
 
| class="blue top dotmeright" |
 
| class="blue top dotmeright" |
 
===[[sc:S1|S1]]===
 
===[[sc:S1|S1]]===
| class="blue top dotmeright" |
+
| class="blue this top dotmeright" |
 
===[[sc:M1|M1]]===
 
===[[sc:M1|M1]]===
 
| class="green top dotmeright" |
 
| class="green top dotmeright" |
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| class="green top dotmeright" |
 
| class="green top dotmeright" |
 
===[[sc:D2|D2]]===
 
===[[sc:D2|D2]]===
| class="buyer top" |  
+
| class="green top dotmeright" |
 +
===[[sc:D2|D2]]===
 +
| class="green top" |
 +
=== [[sc:S*|S*]] ===
 
|-
 
|-
 
| class="blanco top" rowspan=2 |
 
| class="blanco top" rowspan=2 |
=== [[t:MTO|MTO]]/[[t:CTO|CTO]] ===
+
=== [[t:CTO|CTO]] ([[t:MTO|MTO]]) ===
 
[[t:CTO]]
 
[[t:CTO]]
 
| class="blue top dotmeright" |  
 
| class="blue top dotmeright" |  
| class="blue top dotmeright" |
+
=== [[sc:D*|D*]] ===
 +
| class="blue this top dotmeright" |
 
===[[sc:S1|S1]]===
 
===[[sc:S1|S1]]===
 
| class="green top dotmeright" rowspan=2 |
 
| class="green top dotmeright" rowspan=2 |
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| class="green top dotmeright" rowspan=2 |
 
| class="green top dotmeright" rowspan=2 |
 
===[[sc:M2|M2]]===
 
===[[sc:M2|M2]]===
 +
| class="green top dotmeright" rowspan=2 |
 +
===[[sc:D2|D2]]===
 
| class="green top dotmeright" rowspan=2 |
 
| class="green top dotmeright" rowspan=2 |
 
===[[sc:D2|D2]]===
 
===[[sc:D2|D2]]===
 
| class="green top" rowspan=2 |  
 
| class="green top" rowspan=2 |  
 +
=== [[sc:S*|S*]] ===
 
|-
 
|-
| class="green dotmeright" |  
+
| class="green this dotmeright" |  
 +
=== [[sc:D*|D*]] ===
 
| class="green dotmeright" |
 
| class="green dotmeright" |
 
===[[sc:S2|S2]]===
 
===[[sc:S2|S2]]===
 
|-
 
|-
| class="top" style = "width: 30%; border-right: 0;" |    
+
| class="top" style = "width: 20%; border-right: 0; background-color: white;" |    
| class="top" style = "width: 10%; text-align: center; border-left: 1px dashed silver; border-bottom: 1px dashed silver; border-right: 1px dashed silver;" | Supplier  
+
| class="top" style = "width: 10%; text-align: center; border-left: 1px dashed silver; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" | Supplier  
| class="top" style = "width: 10%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver;" | Source  
+
| class="top" style = "width: 15%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" | Source  
| class="top" style = "width: 30%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver;" colspan = 3 | Make  
+
| class="top" style = "width: 30%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" colspan = 3 | Make  
| class="top" style = "width: 10%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver;" | Deliver  
+
| class="top" style = "width: 15%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" colspan = 2 | Deliver  
| class="top" style = "width: 10%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver;" | Customer  
+
| class="top" style = "width: 10%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver; background-color: white;" | Customer  
 
|}
 
|}
 +
For [[t:ETO]] replace Customer Order with Customer Intent.
 
===Use Cases===
 
===Use Cases===
 
* [[sc:A2]]
 
* [[sc:A2]]
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{{#css:
 
{{#css:
 
   h1.subtitle {display:none;}
 
   h1.subtitle {display:none;}
   table td a, table td a:hover {color: white;}
+
   table td a, #mw-content-text table td a:hover {color: white;}
   table td.blanco a, table td.blanco a:hover {color: black;}  
+
   table td.blanco a, #mw-content-text table td.blanco a:hover {color: black;}  
 
   table td.green {background-color: #7AB800; text-align: center; color: white; }
 
   table td.green {background-color: #7AB800; text-align: center; color: white; }
 
   table td.blue {background-color: #1185DD; text-align: center; color: white; }
 
   table td.blue {background-color: #1185DD; text-align: center; color: white; }
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   table td.dotmeright { border-right: 1px dashed silver; }
 
   table td.dotmeright { border-right: 1px dashed silver; }
 
   table td.solidright { border-right: 3px solid white; }
 
   table td.solidright { border-right: 3px solid white; }
 +
  table td.this a {border: 2px solid white; padding: 6px; border-radius: 6px;}
 
   table td.buyer {text-align: right; color: white; padding-right: 8px; background-color: #7AB800;}
 
   table td.buyer {text-align: right; color: white; padding-right: 8px; background-color: #7AB800;}
 
   table td.seller {text-align: left; color: white; padding-left: 8px; background-color: #1185DD;}
 
   table td.seller {text-align: left; color: white; padding-left: 8px; background-color: #1185DD;}

Latest revision as of 22:17, 29 September 2020

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:

  • Upstream processes are driven by forecast based planning information (blue in the diagram), Materials are pushed downstream. Optimization is realized by balancing inventory and capacity.
  • Downstream processes are driven by actual customer orders (green in the diagram). Materials are pulled by the order. Optimization is realized by balancing capacity and lead-times.

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 (white rounded box in the diagram) typically reside in the first MTS process (when looking upstream):


Strategy

Supplier Receive, Store Pre-build/ Produce Assemble/ Finish Package, Store Pick, Load, Ship Invoice Customer

VMI (MTS)

Vendor Managed Inventory

D*

S1

M1

M1

M1

D1

D1

S*

MTS

Make-to-Stock

D*

S1

M1

M1

M1

D1

D1

S*

PTO (MTO)

Package-to-Order

D*

S1

M1

M1

M2

D2

D2

S*

ATO (MTO)

Assemble-to-Order

D*

S1

M1

M2

M2

D2

D2

S*

CTO (MTO)

Configure-To-Order

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.

Use Cases

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Process(es)

IDNameLevelx
A108Define Supply Chain Network3A108
A202Define Supply Chain Network3A202
A203Define Network Process Flow3A203
A210Define To-Be Supply Chain Network3A210
Customer Order Decoupling Point Best Practice, Customer Order, Decoupling Point, Order Cycle, Order-to-Cash, Supply Chain, Network The process or node in the supply chain network where the activities are no longer driven by individual orders