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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: 20%; border-right: 0; background-color: white;" | | | 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: 15%; 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: 15%; text-align: center; border-bottom: 1px dashed silver; border-right: 1px dashed silver;" colspan = 2 | 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 |
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For [[t:ETO]] replace Customer Order with Customer Intent. | For [[t:ETO]] replace Customer Order with Customer Intent. | ||
Revision as of 03:55, 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):
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.
Use Cases
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