Manufacturers today face a tug-of-war: wasted stockpiles of finished products or custom-built orders that face long delays. Assemble to order (ATO) offers a smarter middle ground. By keeping standard components ready and completing assembly only after an order is received, ATO provides businesses with speed, flexibility, and control.
Assemble to order (ATO) is a production strategy where manufacturers keep standard components in stock but only assemble the final product once a customer’s order arrives.
This lower-stakes approach offers a middle ground between make-to-stock (MTS), which prioritizes speed but risks overproduction, and make-to-order (MTO), which enables customization but often results in long lead times.
Read more about make-to-order solutions for manufacturers.
Key characteristics of ATO include:
ATO also differs from engineer-to-order (ETO), where entirely new designs are created for each client. Instead, ATO relies on predesigned parts, allowing manufacturers to balance efficiency with customization.
The ATO process begins when a customer places an order. The flow typically follows four steps:
Technology plays a central role in making ATO efficient. Modern ERP systems, such as Epicor Kinetic, connect sales, inventory, and production, ensuring smooth coordination across departments. This visibility helps manufacturers manage component availability, anticipate supply chain risks, and avoid costly delays.
Supply chain reliability is equally critical. If subassemblies aren’t available when orders come in, the entire system stalls. Successful ATO manufacturers use ERP-enabled forecasting tools to anticipate demand, align suppliers, and maintain just the right level of component inventory.
ATO provides a set of advantages that help manufacturers stay competitive in today’s market.
Customers increasingly expect products that reflect their individual needs. ATO allows manufacturers to offer customizable options such as configurations, finishes, or packaging without the inefficiencies of fully custom builds. In fact, consumers are often willing to pay a premium of up to 20% for customized products.
Instead of tying up capital in finished goods that may not sell, ATO relies on flexible components that can be reallocated if demand shifts. This minimizes dead stock and lowers carrying costs.
ATO helps businesses adapt to fluctuations in demand, shortening lead times compared to MTO while avoiding the risks of MTS.
PricewaterhouseCoopers (PwC) notes that manufacturers moving toward mass customization gain the ability to balance efficiency and innovation in ways that broaden their customer reach.
When manufacturers can deliver tailored products quickly, they strengthen customer loyalty and boost repeat business.
ATO combines speed, choice, and efficiency, empowering manufacturers to deliver exactly what customers want without overextending resources.
Related: Uncover the six tech tools every manufacturer needs to increase their bottom line.
Adopting an assemble-to-order strategy requires more than stocking components. Manufacturers succeed with ATO by focusing on three key areas:
Reliable forecasting reduces the risk of stockouts and helps ensure the right subassemblies are always on hand. Advanced analytics and machine learning can improve accuracy for surges or seasonal shifts.
ATO depends on the timely delivery of standardized components. Close partnerships with suppliers help keep lead times predictable and minimize disruptions.
Preassembling the most time-consuming or complex parts allows manufacturers to balance speed with customization. This “partial assembly” approach is one way companies like Dell and Apple have streamlined production.
Integrating these practices into an ERP platform makes ATO even more effective. With connected supply chain data, manufacturers unlock the agility to assemble the right product, at the right time, for the right customer.
Epicor Kinetic ERP is designed to support manufacturers adopting ATO strategies by connecting every part of the production process from sales order to final assembly.
Core Epicor capabilities include:
Epicor demonstrates the impact of its solutions in stories of real-world customer success:
A precision die-cut manufacturer, Plitek partners with Epicor to streamline complex custom orders while maintaining speed and accuracy. Their ATO-friendly workflows allow them to deliver tailored solutions without excess finished inventory.
Known for custom graphics and mascots, Olympus Group leverages Epicor to improve scheduling and inventory management. Epicor helps Olympus quickly and cost-efficiently meet fast-changing customer requirements.
An aerospace component manufacturer that depends on flexibility and compliance, Novaria relies on Epicor to manage configurable subassemblies and complex order flows, ensuring every product meets rigorous standards.
Together, these examples highlight how Epicor helps manufacturers balance customization, efficiency, and reliability, building a strong foundation for successful ATO.
Companies worldwide are adopting assemble-to-order (ATO) manufacturing as a means to future-proof their operations. ATO combines stocked subassemblies with customer-driven final assembly, offering manufacturers the flexibility to meet rising demand for customization while managing costs.
Epicor enables this transformation with powerful solutions built with manufacturers, for manufacturers. Epicor integrates production management, MES, configurators, and supply chain tools to give businesses the agility to assemble what customers want when they want it, without waste or inefficiency.
ATO provides the balance and agility companies need to thrive amid a fractured market and mounting customer demands. With Epicor as a partner, manufacturers can move confidently toward a more resilient future.
Find out how Epicor can help your business move forward. Book a demo today.
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