orderstyrd

Orderstyrd is a production and supply chain approach in which production and purchasing activities are triggered by customer orders rather than by long-term forecasts. In an orderstyrd system, the decoupling point—where demand becomes specific to a customer order—often lies closer to the end of the value chain, resulting in manufacturing and procurement being activated only after an order is received. This is common in make-to-order and configure-to-order environments and contrasts with forecast-driven make-to-stock systems.

Key characteristics of orderstyrd production include pull-based planning, high product configurability, and a reliance on flexible manufacturing and rapid changeovers. Information systems such as ERP and MES are typically used to translate orders into manufacturing orders, manage bill of materials configurations, and coordinate suppliers. The approach requires close coordination between sales, engineering, procurement, and production, as well as reliable supplier performance and accurate order data.

Benefits of orderstyrd include reduced inventory and obsolescence, better customization, and improved cash flow due to smaller finished goods buffers. Risks include longer lead times for new orders, higher setup and changeover costs, capacity constraints, and the need for sophisticated scheduling and demand forecasting for new configurations.

Industries commonly using orderstyrd include high-variability, low-volume manufacturing such as aerospace, specialized machinery, and configurable consumer electronics. The concept is closely related to terms like kundorderstyrd or order-driven production, make-to-order, and configure-to-order, and it is influenced by the customer order decoupling point.