Skip to content

Common abbreviations explained

Below is a list of frequently used abbreviations used in relation to CPQ:
 
  • ATO – Assemble To Order;  is a production approach where once a confirmed order for products is received, the products are assembled.
 
  • BOM – Bill Of Material; describes the different components/articles that together create a product. A BOM for a bicycle, for example, consists of all the parts that make up the bicycle: the frame, the saddle, wheels, and so on.
 
  • BTO – Built To Order; sometimes referred to as make to order (MTO), is a production approach where once a confirmed order for products is received, products are built.
 
  • CAD – Computer Aided Design; is the use of computer systems to assist in the creation, modification, analysis, or optimization of a design.
 
  • CPQ – Configure, Price and Quote; the complete software suite for configuring, pricing and quoting your custom product.
 
  • CRM – Customer Relation Management; the software suite for managing a company’s interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. 
 
  • E-BOM – Engineering Bill Of Material; the list of engineering components/articles in a product (see BOM). Typically used as an complement to S-BOM and M-BOM.
 
  • ERP – Enterprise Resource Planning; the software suite to manage information across an entire organization, including finance, manufacturing and sometime sales and service.
 
  • ETO – Engineer To Order; a product in which after an order is received, parts of or the design is done uniquely for the specific customer.
 
  • M-BOM - Manufacturing BOM; the list of components/articles required to manufacture a product (see BOM). Typically used as an complement to S-BOM and E-BOM.
 
  • MTO - Made To Order; see BTO (Built To Order)
 
  • PDM – Product Data Management; typically an IT-system containing information about the product like CAD-drawings etc.
 
  • PLM – Product Lifecycle Management; in essence the next generation of PDM (even though vendors of PLM like to differentiate)
 
  • Sales-BOM – As Sold BOM; which is the list of component that are sold to a customer. These components are broken down to a E-BOM.
 
  • SKU - Stock Keeping Unit; a distinct type of item for sale, often the items included in a S-BOM. Typically used as another term for article or component. 

Blog comments