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.
Define Bill of Materials (BOM)
A BOM must exist for the ATO model/item, defining all the components required for assembly.
Associate Configurator Model (Optional)
For configurable ATOs, a Configurator model must be developed and linked to the ATO item.
Define Order Management Workflow
The OM order line workflow must include the 'Create Supply Order' activity to trigger the manufacturing process.
ATO 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.