{"id":23882,"date":"2026-08-18T12:50:38","date_gmt":"2026-08-18T12:50:38","guid":{"rendered":"https:\/\/www.cincom.com\/?post_type=glossary&#038;p=23882"},"modified":"2026-08-21T12:40:44","modified_gmt":"2026-08-21T12:40:44","slug":"configure-to-order-cto","status":"publish","type":"glossary","link":"https:\/\/www.cincom.com\/it\/glossary\/configure-to-order-cto\/","title":{"rendered":"Configure-to-Order (CTO)"},"content":{"rendered":"<h2 aria-level=\"1\"><span data-contrast=\"none\">What is Configure-to-Order (CTO)<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:360,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">Configure-to-order (CTO) is a manufacturing strategy where a product is assembled from pre-engineered components, and the final configuration is locked after a customer places an order. In CTO, the building blocks already exist. What changes from order to order is how they get combined.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A manufacturer using the <a href=\"https:\/\/www.cincom.com\/blog\/cpq\/why-cincom-is-the-best-cpq-system-for-sales-efficiency-in-configure-to-order-environments\/\" target=\"_blank\" rel=\"noopener\">CTO approach<\/a> does not design something new for every customer. It selects from validated components and options and then assembles a <a href=\"https:\/\/www.cincom.com\/cpq\/capabilities\/configurator\/\" target=\"_blank\" rel=\"noopener\">product configuration<\/a> that matches the customer&#8217;s specification.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Benefits of Configure-to-Order<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<ul>\n<li><b><span data-contrast=\"auto\">Faster order fulfillment<\/span><\/b><span data-contrast=\"auto\">: Components are already engineered and validated, so product can be manufactured as soon as customer order is confirmed.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">High levels of customization<\/span><\/b><span data-contrast=\"auto\">: Customers get a configuration built around their needs and requirements<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Low engineering overhead: <\/span><\/b><span data-contrast=\"auto\">Product components are already defined, so engineers aren&#8217;t pulled into sales conversations to check feasibility on every deal.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Easier inventory management<\/span><\/b><span data-contrast=\"auto\">: Manufacturers stock modular components rather than every finished combination a customer might request, which streamlines inventory management.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/li>\n<li><strong>Accurate quoting<\/strong>: Manufacturers can easily apply pricing logic based on the final product configuration, helping them protect profit margins and generate <a href=\"https:\/\/www.cincom.com\/cpq\/capabilities\/quoting\/\" target=\"_blank\" rel=\"noopener\">accurate quotes<\/a> in minutes.<\/li>\n<\/ul>\n<h3 aria-level=\"2\"><span data-contrast=\"none\">People Also Ask<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\n<p><b><span data-contrast=\"auto\">What industries commonly use configure-to-order manufacturing?<\/span><\/b><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Industrial equipment, electronics, HVAC, and enterprise software are common industries where CTO production strategy is widely used.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">What is the difference between configure-to-order and make-to-order strategies?\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p>\n<p><span data-teams=\"true\">In CTO, manufacturers assemble products from pre-built components. On the other hand, in MTO, manufacturers build the product based on the customer&#8217;s order confirmation.<\/span><\/p>\n<p><b><span data-contrast=\"auto\">How does CPQ software support a configure-to-order strategy?\u00a0<\/span><\/b><\/p>\n<p><span class=\"TextRun SCXW42814310 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW42814310 BCX8\">CPQ software<\/span><span class=\"NormalTextRun SCXW42814310 BCX8\"> manages which options and components can be combined, applies pricing automatically, and produces a quote the manufacturer can <\/span><span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW42814310 BCX8\">actually build<\/span><span class=\"NormalTextRun SCXW42814310 BCX8\">. Manual validation steps disappear, and the gap between quote and order confirmation gets shorter.<\/span><\/span><span class=\"EOP Selected SCXW42814310 BCX8\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What industries commonly use configure-to-order manufacturing?\u00a0\u00a0\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Industrial equipment, electronics, HVAC, and enterprise software are common industries where CTO production strategy is widely used.\u00a0\"}},{\"@type\":\"Question\",\"name\":\"What is the difference between configure-to-order and make-to-order strategies?\u00a0\u00a0\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"In CTO, manufacturers assemble products from pre-built components. 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