orderdriven

Orderdriven, or order-driven, is an adjective used to describe systems, markets, or processes that are guided primarily by customer orders or demand signals rather than forecasts or predetermined schedules.

In finance, an order-driven market is a trading venue where buy and sell orders are matched mainly through an order book. Prices are determined by the execution of those orders, with continuous trading and transparency as key features. Participants submit limit or market orders, which are matched against existing orders by a matching engine. Compared with quote-driven (dealer-based) markets, order-driven markets can offer narrower spreads and greater liquidity when active, but may experience higher short-term volatility in times of low liquidity.

In manufacturing and supply chain management, an order-driven or pull system keeps production and procurement aligned with actual customer orders. This approach reduces finished-goods inventory and minimizes obsolescence, and is common in make-to-order or assemble-to-order environments. Characteristics include demand-driven scheduling, flexible capacity planning, and potentially longer lead times. Challenges include managing demand variability, coordinating suppliers, and sustaining efficient throughput under fluctuating orders.

The term can also appear in IT and operations literature to describe processes that respond to demand signals rather than forecasts. While its precise meaning varies by domain, the core idea remains consistent: actions are triggered by actual orders or demand cues rather than by speculative planning alone. Overall, order-driven approaches emphasize responsiveness, transparency, and inventory discipline, at the potential cost of longer lead times or higher sensitivity to demand fluctuations.