ERP Term
"Engineer-to-Order (ETO)"

A production approach where items are engineered and built to specifications after receiving the order and perhaps paying a deposit.

Engineer-to-Order (ETO) is a production approach where items are engineered and built to specifications after receiving the order. In many cases, a deposit may be required before production can begin.

This type of manufacturing is often used for customized or one-of-a-kind products. The critical advantage of ETO is that it allows manufacturers to create products that meet specific customer requirements.

Disadvantages of ETO include the potential for longer lead times and higher costs due to the need for customization. There is also a risk that the final product may not meet the customer's expectations if the engineering process is not well executed. 

Related Blog Articles

implementing-a-wms-banner.jpg
Understanding Warehouse Management Solutions
A warehouse management system (WMS) is a software application that supports the day-to-day operations in a warehouse. A WMS helps to control and direct the movement of materials within a warehouse and plays an essential role in optimizing the efficiency of these operations. There are many things to consider when implementing a WMS, from the size and layout of your warehouse to the type of products you're storing. This blog...
managing-manufacturing-in-erps.jpg
Managing the Manufacturing Process in ERPs
Enterprise Resource Planning (ERP) systems are integrated software solutions that help businesses manage the vital components of their operations, including product development, Manufacturing, supply chain, shipping and logistics, customer relationship management (CRM), and finance.  An ERP system consolidates all of these business functions into a single, comprehensive software solution that can be accessed by authorized users from anywhere in the organization. This centralized access to information and data allows businesses to...
smart-factory-potatoe-chip-production.png
Smart Factories for Smart Snacks: How SIX ERP Transforms Food Production
As the CEO and mastermind behind our ERP implementations, I’ve seen firsthand how manufacturing is evolving. It’s no longer just about efficiency - it’s about intelligence, adaptability, and staying ahead of the curve. At SIX ERP, we don’t just implement software; we engineer smart, scalable solutions that transform production lines into data-driven, automated ecosystems.One of our most exciting challenges? Equipping a new potato chips factory with a fully automated, sensor-driven...

Want to see SIX for yourself?

Need help, have questions or want to get a free demo?

Please read our Privacy Policy on how we process personal data. We will never share your data!