OpenReference

Engineer-to-Order is the Supply Chain Configuration Strategy that enables customer-driven requirements to be recorded on the order and design/engineering to be finalized as part of the execution of the order (Order Engineering). Typically these customer-driven requirements are unknown at the time of product design or are variations that are not designed into the product or offering (at the time of product engineering).

Engineer-to-Order extends the capabilities of Make-to-Order to include Order Engineering activities. Configurable Make-to-Order products are generally menu-driven. This implies the configurable part of a Make-to-Order product has been defined as part of product engineering.

Engineer-to-Order is one of the four Supply Chain Configuration Strategies: Make-to-Stock, Make-to-Order, Engineer-to-Order and Reverse Logistics.

Use Cases

• Order Engineering
• Complex construction projects
• Configure-To-Order (exceptional cases)
• In home building: Completely custom home
• In a Retail store: Not a common use case
• In services industries: (Co-) develop a custom offering for a unique client

Notes

Engineer-to-Order does not mean a product is designed completely as part of the Order Engineering process; most use cases have limitations to the extend of customization (requiring engineering) of the product or service. OpenReference recognizes two types of Engineering:

• Product Engineering is a process driven by market requirements and is generally performed prior to marketing the product (and taking customer orders for such product)
• Order Engineering is a Supply Chain process driven by an individual customer order and is generally performed after the product has been engineered (as part of product engineering processes) and after the receipt of a customer order

Another differentiator from Make-to-Order: Engineer-to-Order orders are generally considered project orders.

Hierarchy

ID	Name	Level	x
SCCS	Supply Chain Configuration Strategy	1	SCCS
ETO	Engineer-to-Order	2	ETO

Process(es)

ID	Name	Level	x
A1	Align Strategy	2	A1
A103	Segment Supply Chains	3	A103
A113	Identify Strategic Supply Chain Capabilities	3	A113
A2	Align Network	2	A2
S3	Source-to-Engineering-Order	2	S3
M3	Make-To-Engineering-Order	2	M3
D3	Deliver-To-Engineering-Order	2	D3

Term(s)

ID	Name	Clear	x
MTO	Make-to-Order		MTO
MTS	Make-to-Stock		MTS
OE	Order Engineering		OE
RL	Reverse Logistics		RL
S2P	Source-to-Pay		S2P
SCCS	Supply Chain Configuration Strategy		SCCS

Engineer-to-Order Supply Chain Configuration Strategy 3 2 Supply, Chain, Configuration, Strategy, Requirement, Demand, Driven, ETO, Configure-To-Order, Order Engineering, Project, Orders, Supply Chain The supply chain configuration strategy which enables customer-driven requirements to be recorded on the order and design/engineering to be finalized as part of the execution of the order (order engineering)