Assemble to Order (ATO) Cycle
A guide to building products based on specific customer orders.
Assemble to Order (ATO) Overview
The Assemble to Order (ATO) cycle is a hybrid business strategy where key components are stocked in anticipation of demand, but the final product is only assembled after a customer places an order. This "just-in-time" assembly approach allows for significant product customization and reduces finished goods inventory, combining the benefits of both make-to-stock and make-to-order environments.
Case Study: Customizing a Gaming PC
Key Prerequisites
Define ATO Model/Item
Items must be defined with key ATO attributes checked (e.g., Assemble to Order, WIP Supply Type = Phantom) in the Item Master.
Product Information Management > Create ItemDefine Bill of Materials (BOM)
A BOM must exist for the ATO model/item, defining all the components required for assembly.
Product Information Management > Manage Items > Specifications > StructuresAssociate Configurator Model (Optional)
For configurable ATOs, a Configurator model must be developed and linked to the ATO item.
Configurator Models > Manage ModelsDefine Order Management Workflow
The OM order line workflow must include the 'Create Supply Order' activity to trigger the manufacturing process.
Setup and Maintenance > Manage Orchestration Process DefinitionsATO Process Flow
Create & Book Sales Order
Configure Order (If Applicable)
Progress Order Line
AutoCreate Final Assembly Order
WIP Job Completion
Pick Release & Ship
Create AR Invoice
Step-by-Step Breakdown
Create & Book Sales Order
Actor: Order Entry Clerk | Module: Oracle Order Management
The process starts with a sales order for a configurable ATO model, option class, or a standard ATO item. Booking the order confirms customer demand.
Example: A customer orders a gaming PC. The clerk creates and books a sales order for the "Gaming PC" ATO model.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Order Management > Order Management > Create Order
Key Actions:
Select a Business Unit, enter Customer, and add the Assemble-to-Order item to the lines.
Configure Order (If Applicable)
Actor: User / System | Module: Oracle Configurator
If the order is for a configurable ATO model, the user selects options (e.g., RAM, hard drive). This creates a unique configuration item linked to the sales order.
Example: The Oracle Configurator window opens, and the customer chooses a high-end graphics card and 32GB of RAM. The system creates a unique part number for this specific PC configuration.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Order lines > Click "Configure" icon for the ATO model line.
Key Actions:
The configuration UI opens. Select the desired options and submit to generate the configured item.
Progress Order Line
Actor: System / Order Manager | Module: Oracle Order Management
The order line is progressed. This workflow activity creates a demand link to Work in Process (WIP) and makes the line eligible for manufacturing.
Example: The order line workflow progresses to "Create Supply - Eligible", signaling that a manufacturing job is now needed for this unique PC configuration.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
This is typically an automated step in the fulfillment orchestration process.
Key Actions:
The orchestration process automatically advances the line to the "Create Supply" step.
AutoCreate Final Assembly Order
Actor: System / Production Planner | Module: Oracle Work in Process (WIP)
A Final Assembly (WIP) Job is automatically created to build the specific item for the sales order. This job is "hard-pegged" (reserved) for the sales order.
Example: The "AutoCreate Final Assembly Orders" program runs and creates a WIP job specifically for the customer's configured gaming PC.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Supply Chain Orchestration automatically creates and releases a Work Order.
Key Actions:
A work order is created with a status of "Released", and the details are visible in the Supply Orchestration work area.
WIP Job Completion
Actor: Production Operator | Module: Oracle Work in Process (WIP)
The item is assembled, and the WIP Job is completed. This transaction moves the finished good into a specified subinventory, ready for shipping.
Example: A technician assembles the PC. Upon completion, they complete the WIP job in Oracle, which moves the finished PC into the "Finished Goods" inventory.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Supply Chain Execution > Work Execution > "Complete with Details" task
Key Actions:
Search for the work order, select it, and enter the quantity to complete.
Pick Release & Ship
Actor: Shipping Clerk | Module: Oracle Shipping Execution
The completed item, which is already reserved for the sales order, is picked from the subinventory, packed, and shipped to the customer.
Example: The shipping department runs Pick Release. The system directs them to pick the newly assembled PC, which they pack and ship to the customer.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Supply Chain Execution > Shipping > "Manage Shipments" > Ship Confirm
Key Actions:
Create a Pick Wave, confirm the pick, and then ship confirm the shipment.
Create AR Invoice
Actor: AR Accountant / System | Module: Oracle Receivables
Once the item is shipped, the AutoInvoice program runs to create an AR invoice, billing the customer for the customized, assembled product.
Example: After shipment, the AutoInvoice program creates an invoice in Accounts Receivable, which is then sent to the customer for payment.
Navigation & Key Actions for Oracle Fusion
Navigation Path:
Scheduled Processes > Schedule New Process > "Import AutoInvoice"
Key Actions:
Run the process for the "Sales Order" business unit and transaction source.