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Editorial from the May 2008 issue of Managing Automation

Delivering on Promises

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Abstract:As supply networks and production scenarios grow more complex, available-to-promise processes are changing. Now manufacturers are using advanced tools and collaboration to juggle customer service with profitability.
Keywords:available to promise, available to promise processes, ATP processes, capable to promise, CTP
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Way back in the early 1990s, when many manufacturers were just beginning to transform and automate order management processes, available-to-promise (ATP) usually meant sending a query to the master production schedule and trying to determine the earliest date when an incoming order could be filled.

How times have changed. Today's complex, specialized production environments, increased competition, and manufacturers' growing reliance on partners within a multi-layer global trading network have combined to morph traditional ATP into a complicated, multifaceted business process.

The simple notion of receiving an order, checking inventory, and setting a date for delivery has evolved to incorporate planned inventory in addition to what's already in stock. At the same time, manufacturers are striving to track supplies from disparate sources, juggle customers and product lines vying for production resources, and even figure whether they'll end up profiting or losing money by filling a challenging order on a certain date. The good news is that increasingly sophisticated software is available to help. But software alone is not the answer, experts say. To successfully implement ATP in a more complex world, many manufacturers will need to undergo a mind-set shift by entering into more collaborative relationships with their supply partners.

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