In the fast-paced world of supply chain management, the ability to commit to customer demands confidently is a game-changer. This is where the concept of "Capable to Promise" (CTP) comes into play, especially within the realm of Microsoft Dynamics 365 Business Central. CTP is a powerful feature that enables businesses to make reliable delivery commitments based on real-time data. Let’s dive into how it transforms the fulfillment process.
What is "Capable to Promise"?
"Capable to Promise" is a system-generated calculation that determines the earliest possible date a product can be available to fulfill an order. Unlike a simple availability check, CTP considers various factors, including current inventory levels, production schedules, lead times, and supply constraints. It’s about making a promise that your business is capable of keeping, by ensuring the requested product can be delivered on time before confirming an order with a customer.
The Mechanics of CTP in Business Central
Business Central integrates CTP within its robust supply chain and inventory management modules. It utilizes advanced algorithms that account for:
- Existing Inventory: Scanning current stock to identify available products.
- Production Capacity: Evaluating manufacturing schedules and capacity for producing more goods.
- Supplier Lead Times: Calculating the time it takes for vendors to deliver raw materials or products.
By considering these elements, Business Central provides a comprehensive view of when an item can realistically be delivered.
