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Custom manufacturing with control: Make to Order with Microsoft Dynamics 365 Business Central
Make to Order with Business Central: streamline custom manufacturing, reduce waste, and boost customer satisfaction.
In today’s market, customers increasingly expect products tailored to their needs, but they also want fast delivery. The configure to order (CTO) approach helps manufacturers strike the right balance between customization and efficiency. This article explores how CTO works and how Microsoft Dynamics 365 Business Central helps make complexity manageable without losing control on the shop floor.
Gor Sayadyan
What is Make to Order?
In an MTO model, production starts only after the customer has clearly defined their needs. You don’t produce for stock. Every order begins with a specific request.
Benefits:
- No unnecessary inventory buildup
- Full focus on customer needs
- Lower risk of product obsolescence
Challenges:
- Long lead times if planning is not tight
- High pressure on capacity and resources
- Need for seamless collaboration between sales, production, and procurement
How Business Central supports the MTO model
Microsoft Dynamics 365 Business Central is a cloud-based ERP solution that offers practical tools for managing CTO processes in a streamlined and scalable way.
Easy configuration with variants and assemblies
With item variants, assembly groups, and structured BOMs, it becomes easy to build modular products without needing custom code. For more advanced configurations, Business Central can be connected to a Product Data Management (PDM) system. This kind of system stores and manages product-related data and documents throughout the full lifecycle.
Automatic assembly and production orders
Once the customer selects a configuration, Business Central generates the corresponding assembly or production order. This eliminates manual input and reduces the risk of mistakes.
Real-time insights on availability and lead time
The system automatically checks whether the required components are in stock and calculates a realistic delivery date. This helps sales and operations align quickly.
Full integration with the sales process
From quotation to delivery, every step is linked. The chosen configuration flows directly into order handling and production planning, keeping everything aligned and efficient.
Real-world example
A manufacturer of industrial ventilation systems receives a customer order with specific dimensions, motor power, and mounting options. Business Central automatically generates a production order, plans the required components via MRP, and links progress to the sales order.
Lead time and delivery date are tracked centrally and communicated across all departments.
Where Business Central reaches its limits for CTO
Business Central offers a strong foundation for configure to order workflows, but there are a few areas where it may fall short for highly modular or complex products:
- There is no advanced visual configurator built into the platform
- Rules for dependencies or exclusions often require custom logic
- With highly modular products, the number of item variants can grow quickly and become difficult to manage
Many companies solve these challenges by integrating Business Central with external configurators and tools designed specifically for CTO scenarios. These additions help manufacturers maintain control and reduce complexity, even when working with a wide range of options and variants.
Conclusion
Make to Order manufacturing demands flexibility and precision. With Business Central, you manage the entire process from quote to delivery in one system. You align production with customer demand while maintaining control over capacity and material planning. The result is higher customer satisfaction and improved operational efficiency.
Discover Microsoft Dynamics 365 Business Central
Visit the product page to get an overview of how Business Central supports stock-driven production and more.
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Read the next article: Engineer to Order
Engineer to Order with Business Central helps you manage complex, customer-specific projects from design to delivery with full control and project visibility.
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