configurationtoorder
Configuration to order (CTO) is a production strategy in which a product is offered as a family of configurable options drawn from a common platform and is assembled or configured after the customer places an order. The configurability is defined by a product model with predefined modules, features, and constraints, enabling a wide range of end products without starting a new engineering project for each order.
Upon order receipt, a product configurator applies business rules to select components, determine BOM, estimate lead
CTO sits between Make-to-Stock (MTS) and Make-to-Order (MTO) and is closely related to Assemble-to-Order (ATO). It
Benefits include reduced inventory, faster quote-to-cash cycles, improved customer satisfaction through tailored options, and scalable production.
Industries commonly employing CTO include consumer electronics, computer hardware, industrial equipment, automotive, and telecommunications equipment.