Overview of Configure-to-Order

Use configure-to-order to allow your customer to choose options for each component of a configured item.

For example, order a laptop computer with a 1 terabyte hard drive. The computer is an example of a configured item. The hard drive is an example of a configure option. 1 terabyte and 500 megabytes are each values your customer can choose for the option. A configured item can include more than one configure option. A laptop computer can include other options, such as memory, the display, color of the chassis, and so on.

Configure-to-order is the process of ordering and fulfilling a configured item.

Why Should I Use Configure-to-Order?

Its expensive to build and stock supply for all the different possible combinations of options, store it in inventory, then wait for your customers to order. Instead, use just-in-time manufacturing and other manufacturing processes, such as postponement, to build the item on demand, when and where you customer orders it.
Some options rarely sell, but when they do sell, they meet an important customer requirement.
Some items cost a lot of money and are expensive to maintain as on-hand inventory.
Some items are physically large and not practical to stock in every possible combination.
Modeling each configured item separately improves handling and helps the warehouse and shop floor to identify and manage the item.
Improve visibility for the item and on-hand quantities in inventory, promising, and planning.

What's a Configuration Model?

Here's a generic structure of a configuration model.

Here are some important concepts.

Concept	Description
Configuration model	A structure that defines the options your user can choose for each component. You can also specify that a component is required. You define the model during set up. You don't order or build the model at runtime.
Option class	An object you use to organize configure options.
Configure option	Child of an object class. The hard drive, monitor, and mouse are each an example of a configure option. Your user can choose the value for a configure option from a list of available options.
Configured item	An item that includes one or more configure options that your user chooses. A desktop computer where you choose the hard drive, monitor, and mouse is an example of a configured item. A configured item is the result of the choices that your user makes at runtime when configuring the item.
Required component	Component in the model that the user can't choose. For example, you usually can't choose the cooling fan when you order a laptop computer.

Note

You create the model, classes, options, and structure in the Product Information Management work area at design time.
A user chooses options in the Order Management work area in a sales order at runtime.

Example

Here's an example of a configuration model.

Note

The model, each option class, and each option are separate items that you create in the Product Information Management work area. For example, CTO_474000 is the item name for the model, CTO_474100 is the name of the screen option class, and CTO_474101 is the name of the 14" screen option.
The processor and battery are required components in this model. You can't order a laptop without them.
The screen option class is required. You can't order a laptop without a screen, but you can order a 14" screen or 15.6" screen.
The camera option class is optional. You can order a laptop without a camera. If you add a camera, then you can add a front camera, rear camera, or front and rear camera.
Your user chooses the options at runtime.

You use the Product Information Management work area to create the structure. For example:

Create an item for each screen option.
Create an item for the screen option class, then add the screens to the class.
Create the model, then add the option class to the model.

Types of Configurations

Configuration	Description
Assemble-to-order (ATO)	Item that isn't yet manufactured and isn't ready to ship. You make it or procure it according to the options that your user sets. A warehouse usually doesn't stock every possible set of options your user might set. Instead, the warehouse receives the work order, then. Uses a drop-ship flow or back-to-back flow to purchase the configured item from a supplier. Uses a back-to-back flow to manufacture the item according to the work order.
Pick-to-order (PTO)	Item where you already manufactured the components, or you must make or purchase them. Can include a back-to-back flow. Can include drop ship. Can include back-to-back and drop ship, but you must ship to your customer in one package.
Hybrid	A pick-to-order item that contains at least one assemble-to-order component.

Configuration

Description

Assemble-to-order (ATO)

Item that isn't yet manufactured and isn't ready to ship. You make it or procure it according to the options that your user sets.

A warehouse usually doesn't stock every possible set of options your user might set. Instead, the warehouse receives the work order, then.
Uses a drop-ship flow or back-to-back flow to purchase the configured item from a supplier.
Uses a back-to-back flow to manufacture the item according to the work order.

Pick-to-order (PTO)

Item where you already manufactured the components, or you must make or purchase them.

Can include a back-to-back flow.
Can include drop ship.
Can include back-to-back and drop ship, but you must ship to your customer in one package.

Hybrid

A pick-to-order item that contains at least one assemble-to-order component.