PTO and ATO or Different Ordering Environments

PTO is Pick To Order: where it is assumed that

availability of stock is plenty just pick and relese and ship for an order.

ATO is Assemble to Order : it is assuemed that

availble of option class all included/standard items/ and depending up on the Order the Assemblies are carried and shipped.

where it is expected that an order is booked for a predefined model item

regards

chandrashek

The fundamental difference between PTO and ATO items is the way they are ordered. Both are composite items but for PTO there are no choices while in ATO there are.

PTO - Pick To Order is a fixed configuration of a product which you need to order. No changes can be done in the configuration.

ATO - Assemble To Order products have options from which the user can configure there final product.

For example consider the buying of a computer. Now there are various sizes of monitor that can be available. Say X is the entire computer. If its a PTO then the monitor given shall be the one that will be delivered. But if its an ATO then the user can select the monitor that is a 15 or a 17 .

This ismade possible in ATO items through the presence of Option Classes.

In Order Management with discrete manufacturing the fulfilment process can be divided into 3 different categories - PTO ATO and CTO.

PTO - Pick To Order. This is a push based manufacturing system where the goods are manufactured based on forecasted demand. The goods are picked as and when the orders come in and fulfilled against the order.

ATO - Assemble To Order. This is a pull based manufacturing system where the parts are kept in stock but not manufactured until the actual order is created. Based on the order the work order gets created (based on a predefined BOM) and fulfilled.

CTO - Configure To Order. This is also pull based. The main difference here is the dynamic creation of the BOM based on option classes defined. The configuration can be created during Order Processing based on which the BOM as well as the work order gets created for fulfilment.

Regards

- Ravi