Actions
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
Customer Order Decoupling Point
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 reside in a MTS process.
Use Cases
Community Importance Rating: Process(es)
| ID | Name | Level | x |
|---|---|---|---|
| A108 | Define Supply Chain Network | 3 | A108 |
| A202 | Define Supply Chain Network | 3 | A202 |
| A203 | Define Network Process Flow | 3 | A203 |
| A210 | Define To-Be Supply Chain Network | 3 | A210 |