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4 Major SCM Operation Strategies

Posted on September 26th, 2007 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

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These are main 4 SCM Operation Strategies, you might came across.

  • Make-to-Stock production is carried out with reference to a forecast or according to a demand aggregated. MTS production is carried out without direct reference to a sales order.
  • Make to Order – One of the standard processes in Supply Chain is the make to order. The process is used to produce products to unique specifications of the customer. The customer order triggers the manufacturing process
  • Configure-to-Order (CTO) represents the ability for a user to define the component make-up of a product at the very moment of ordering that product, and a vendor to subsequently build that configuration dynamically upon receipt of the order
  • Engineer-To-Order (ETO) is whereby finished goods are built to unique customer specifications. Assemblies and raw materials may be stocked but are not assembled into the finished good until a customer order is received and the part is designed. Engineer To Order products may require a unique set of item numbers, bills of material, and routings—and are typically complex with long lead times.

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