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ETO

Engineer-to-Order

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

IDNameLevelx
SCCSSupply Chain Configuration Strategy1SCCS
ETOEngineer-to-Order2ETO

Process(es)

IDNameLevelx
A1Align Strategy2A1
A103Segment Supply Chains3A103
A113Identify Strategic Supply Chain Capabilities3A113
A2Align Network2A2
S3Source-to-Engineering-Order2S3
M3Make-To-Engineering-Order2M3
D3Deliver-To-Engineering-Order2D3

Term(s)

IDNameClearx
MTOMake-to-OrderMTO
MTSMake-to-StockMTS
OEOrder EngineeringOE
RLReverse LogisticsRL
SCCSSupply Chain Configuration StrategySCCS
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)