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Supply Chain Glossary

Glossary  >  A  >  Assemble to Order  


 

Assemble to Order


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

This term describes a manufacturing strategy in which subassemblies or components are produced prior to receipt of customer orders and only assembled to produce the finished item upon receipt of a customer order.  The concept facilitates ‘late customisation’ which allows for a wide range of products to be offered to customers based on different combinations of components.  This allows for the minimisation of inventory of finished goods, shorter lead times and maximum customer choice.  See also Agility and Supply Chain.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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