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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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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 | + | 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 reside in the first [[t:MTS|MTS]] process (when looking upstream): |
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table td a, #mw-content-text 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;} |
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table td.blue {background-color: #1185DD; text-align: center; color: white; } | table td.blue {background-color: #1185DD; text-align: center; color: white; } | ||
Revision as of 04:08, 23 August 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 (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 typically reside 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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