What is configure to order?
Configure to order gives buyers a menu of ready-made choices while keeping production efficient. It sits between make-to-stock, where finished goods wait on the shelf, and make-to-order, where each item is built from scratch.
Standard components are stocked in advance, and the chosen configuration is assembled only after the order arrives, which shortens lead times compared with fully custom builds. This model pairs well with build-to-order manufacturing when teams need repeatable options at scale.
PwC reports that a growing number of manufacturers are adopting configure-to-order and engineer-to-order models to give customers the flexibility to customize their product.
Key characteristics
- Predefined options: Customers choose from a fixed menu of features, not an unlimited custom design.
- Component-level inventory: Standard parts are stocked in advance, and only finished goods are assembled once the order is placed.
- Configurable bill of materials (BOM): Each chosen option maps to a specific set of parts through a configurable bill of materials, so the build list stays accurate every time.
- Order-triggered assembly: Assembly begins only after the order is confirmed, not before.
- Smart manufacturing gains: Manufacturers implementing smart manufacturing reported average production output improvements of 10% to 20%, per Deloitte’s 2025 survey of 600 executives.
Example
Consider a builder of custom fire, rescue, and police vehicles. The company configures each vehicle to a department’s specifications, drawing from standard chassis, body, and equipment options instead of designing every unit from zero. A fire department picks its cab size, pump capacity, and storage layout, and the manufacturer assembles that exact configuration once the order is confirmed.
Related terms
FAQ
What is the difference between configure to order and make to order?
Configure to order builds from a fixed set of predefined options, while make to order can involve custom design and engineering for each request. Configure to order is usually faster because standard components are already stocked, whereas make to order often starts closer to scratch.
Is configure to order the same as mass customization?
Not exactly. Mass customization is the broader goal of delivering personalized products at scale, and configure to order is one common method for reaching it.
What industries use configure to order?
Configure to order is common in automotive, electronics, industrial equipment, furniture, and specialty vehicles. Any industry that offers set product options while controlling build complexity can use it.