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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
CODP
Difference between revisions of "CODP"
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| 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;" | Supplier | ||
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Revision as of 00:24, 10 July 2017
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, 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.
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):
ContentsSupply Chain Configuration Strategy |
Supplier | Receive, Store | Pre-build/ Produce | Assemble/ Finish | Package, Store | Pick, Load, Ship | Invoice | Customer |
MTS/VMI |
S1 |
M1 |
M1 |
M1 |
D1 |
D1 |
||
MTS |
S1 |
M1 |
M1 |
M1 |
D1 |
D1 |
||
MTO/PTO |
S1 |
M1 |
M1 |
M2 |
D2 |
D2 |
||
MTO/ATO |
S1 |
M1 |
M2 |
M2 |
D2 |
D2 |
||
MTO/CTO |
S1 |
M2 |
M2 |
M2 |
D2 |
D2 |
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S2 | ||||||||
| Supplier | Source | Make | Deliver | Customer | ||||
Use Cases
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