Customer Order Decoupling Point is a Term describing the process or node in the supply chain network where the activities are no longer driven by individual orders. Managing Customer Order Decoupling Points is a Best Practice. Show Understanding the Customer Order Decoupling Point of a supply chain is important for Supply Chain Management processes. The behavior of processes upstream and downstram of the Customer Order Decoupling Point is quite different:
The OpenReference Supply Chain Operations Domain recognizes these differences in behavior at level-2: Make-to-Stock (MTS), Make-to-Order (MTO, CTO, ATO, PTO), and Engineer-to-Order (ETO). Customer Order Decoupling Points (white rounded box in the diagram) typically reside in the first MTS process (when looking upstream):
For Engineer-to-Order replace Customer Order with Customer Intent. Use Cases
Community Importance Rating: Process(es)
What is the customer order decoupling point?The CODP is traditionally defined as the point in the value chain for a product, where the product is linked to a specific customer order. Sometimes the CODP is called the order penetration point [1], [2].
What is decoupling point in supply chain?A decoupling point is the boundary between make-to-order (MTO) and make-to-stock (MTS). Many researchers have discussed the decoupling point in a serial supply chain. In reality, a product consists of many parts and components, and, consequently, their supplies form a supply network instead of a supply chain.
What determines the optimal position of the decoupling point?The CODP position is determined with the best fit point which balances between the modularity and customization. This concept is applicable to the overall supply chain design too in addition to manufacturing process flow design.
What does selection of decoupling points determine?Selection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer the point is to the customer, the quicker they can be served.
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The customer order decoupling point determines the position of what in the supply chain?
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