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. 

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