What is Capable-to-Promise-System?
A capable-to-promise system is a system that helps companies anticipate demand and match it to their peak production and capacities. By using a CTP system, a company can strike a balance between what it can produce and what customers and customers request.
Capable-to-Promise is a global way of looking at demand and capacity. Many factors go into this type of system, including raw materials for products as well as problems in the areas Warehousing, Transportation, labor and supply chain. When you look at all of these things, a CTP system helps give really accurate predictions about what's possible in the company. This is why this system is called 'Promise Ready' because it measures a company's ability to truly promise results to a community of buyers.
One way to further define CTP is to compare it to a similar term called Availability to Promise (ATP). The difference is that ATP studies the availability of materials while CTP studies the additional components, labor availability, business fleet performance, or the way materials work through a supply chain. Support from CTP can mean engaging production departments and receiving other information on what is possible in terms of delivery.
Capable-to-Promise is just one example of an enterprise system that companies can use to solve their problems through data analysis. Cloud computing and other recent technological advances provide companies with very sophisticated tools for analyzing and forecasting data, and companies use these to their advantage to better serve their customers, streamline business processes, and operate at maximum efficiency.