Actions

D2

Deliver-to-Order

The processes associated with order management and order fulfillment of Make-to-Order products. This includes order creation, scheduling, transportation scheduling, order picking, packing and shipping and invoicing. Deliver-to-Order is the Deliver process that facilitates the Make-to-Order Supply Chain Strategy.

Use Cases

  • Mass customization
  • Products sourced or made upon receipt of a customer order, identifiable for such order
  • Menu-driven configurable products, made to customer order configuration
  • In a call center: Inquiries and product configuration and order entry
  • In a Warehouse: Order picking, packing and shipping for items sourced or made by customer order
  • In a Warehouse: Order picking, packing and shipping for items made to customer configuration
  • In Retail: Ordering and check-out for Special Order items

Deliver-to-Order processes are recommended for businesses where the number of product variations or value of the product is prohibitive for keeping stock in anticipation of future orders. Deliver-to-Order is not a good fit for products where customers require Order Cycle Times shorter than the lead time to Source or Make the product.

Notes

Deliver-to-Order may be considered a Pull process as product is only sourced or made in response to an order. Deliver-to-Order generally drives to a zero-inventory state except in cases where production batch sizes differ from allowed order sizes or Yield inaccuracy requires production quantities greater than ordered quantities to mitigate risk of insufficient product. Perfect Order Ratio Orders Damage Free Ratio Orders On-time Ratio Orders In-full Ratio Error-free Documentation Ratio Order Cycle Time Deliver Cycle Time Supply Chain Costs Distribution Costs Cash Conversion Cycle Days Receivables Outstanding Days Of Inventory Configure-To-Order Quote-to-Cash Order-to-Cash Package-to-Order

Hierarchy

IDNameLevelx
DDeliver1D
D2Deliver-to-Order2D2
D201Process Inquiry3D201
D202Validate & Create Order3D202
D203Route & Schedule Order3D203
D204Schedule Transportation3D204
D205Invoice3D205
D206Receive & Stage3D206
D207Pick3D207
D208Pack3D208
D209Load3D209
D210Ship3D210

Metric(s)

IDNameLevelx
DP1Perfect Order Ratio1DP1
DP11Orders Damage Free Ratio2DP11
DP13Orders On-time Ratio2DP13
DP14Orders In-full Ratio2DP14
DP15Error-free Documentation Ratio2DP15
RS1Order Cycle Time1RS1
RS12Deliver Cycle Time2RS12
CO1Supply Chain Costs1CO1
CO12Distribution Costs2CO12
AE1Cash Conversion Cycle1AE1
AE11Days Receivables Outstanding2AE11
AE12Days of Inventory2AE12

Term(s)

IDNameClearx
CTOConfigure-To-OrderCTO
MTOMake-to-OrderMTO
O2COrder-to-CashO2C
PTOPackage-to-OrderPTO
Q2CQuote-to-CashQ2C
SOSSpecial Order ServiceSOS
Deliver-to-Order Deliver 420000 2 Order Management, Order Creation, Order Fulfillment, Logistics, Delivery, Distribution, Supply Chain, MTO, Make-to-Stock, Order-driven, CTO, Configure-to-Order, Package-to-Order The processes associated with order management and order fulfillment of make-to-order products. This includes order creation, scheduling, transportation scheduling, order picking, packing and shipping and invoicing