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Unique Design, Unique Execution: Engineer to Order with Microsoft Dynamics 365 Business Central
Engineer to Order with Business Central helps you manage complex, customer-specific projects from design to delivery with full control and project visibility.
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 Engineer to Order?
In an ETO model, a product or solution is designed entirely from scratch based on the customer’s specific requirements. Production only begins after the design is approved.
Benefits:
- Fully aligned with customer needs
- High added value
- Less price-based competition
Challenges:
- Long lead times due to the engineering phase
- Complex communication between departments
- Strong need for project management and cost control
How Business Central Supports the ETO 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 custom-built tanks and silos starts each project with a technical intake and engineering phase. Based on volume, material, and installation requirements, a unique design is created.
Once approved, the design is transferred via Project Based Manufacturing to Business Central, which automatically generates the BOM. Procurement and production are tracked per project, while the project manager monitors budget, lead time, and delivery from a single environment.
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.
Final thoughts
Engineer to Order is arguably the most complex production model, but also the most customer-centric.
With Microsoft Dynamics 365 Business Central, you lay a solid foundation for managing ETO projects. Combine this ERP solution with the right integrations and a partner who understands your industry, and you’ll make ETO manageable, scalable, and profitable.
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Read the next article: Make to Stock
Learn how Microsoft Dynamics 365 Business Central optimizes stock-driven production with smarter forecasting, inventory control, and efficient planning.
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