Abstract :
This paper discusses the possible approaches for designing Engineer to Order (ETO) supply chain scenarios in SAP. SAP is one of the key global ERP vendors and has embedded manufacturing strategies in its product. Some of the most common supply chain strategies included in SAP are Make-to-Order, Make-to-Stock, Assembled-to-order, and Configure-to-order. Heavy engineering/design-based Industries follow the Engineer Order manufacturing strategy to meet customer requirements, usually unique and heavy design-oriented. The ETO scenario is very complicated compared to other manufacturing scenarios as this involves the Design phase, which involves customization, it includes NPDI -New Product development and Introduction, it needs to support advance procurement of long-lead components while the design is under progress, it needs features for forecasting the cost even before the firm sales order is placed by the customer. This paper analyzes key requirements for an ETO scenario and available SAP solutions and then recommends the appropriate ETO approach.
Keyword :
Engineer-to-Order, ETO, Supply chain, SCM, SAP, ERP, Make-to-Order, Manufacturing strategies.