Engineer to Order vs. Made to Order:
How to Capture Clients With CPQ Solutions
You can take many paths to the same destination. In manufacturing, your destination is always a successfully completed order. How you fulfill that order may vary from client to client, however. One may prefer to customize their product from a list of available options, and the other might want full creative input from the beginning.
That’s the difference between made to order (MTO) and engineer to order (ETO), two of the most common production methods for designing and building products in a more personalized manner than mass production provides. While MTO production methods have been around for a long time, ETO manufacturing solutions continue to grow more complex and powerful.
ETO manufacturing involves creating a product custom-made to a customer’s desired specifications. This can become complicated and requires close collaboration between the manufacturing company and the client. But, solutions like configure, price, quote (CPQ) software can go a long way to simplify the complex ETO production cycle.
To explain, let’s look at the key differences between MTO and ETO manufacturing.