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Make-to-Order workflow
Make-to-Order workflow

Streamline make-to-order processes in Katana, from sales orders to production and delivery, ensuring efficiency and customer satisfaction.

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated over a week ago

This 7-step guide gives you an overview of a basic Make-to-Order workflow in Katana. How to build a flow between the Sell, Make, and Buy screens.

Note: If you keep safety stock levels for all products and use a Make-to-Stock approach, take a look at the Make-to-Stock Workflow article. If you use a mix of Make-to-Stock and Make-to-Order, refer to this article.

Companies that make a product when a customer order is received, with no products kept in stock, use a Make-to-Order (MTO) approach.

Step 1: Create a Sales order

An MTO flow usually starts when a Sales order (SO) is received. Sales orders are added to Katana from a an e-commerce channel sync (e.g. Shopify) or by creating them manually. Find Sales orders by heading to the Sell screen.

In the Sell screen, you can track the Sales items availability, Ingredients availability, Production status, and Delivery status for each order.

Using an MTO approach, Sales items availability typically shows Not available since you're not keeping products in stock for immediate delivery.

Ingredients availability shows whether the materials required to make an ordered products are In stock, Expected, or Not available. Find and open an SO where the Ingredients show Not available. Inside this page, click on Not available under Ingredients to find a more detailed list of missing material.

Read more about using the Sell screen.

Step 2: Schedule your production

In this step, we'll start making the products needed for an order.

On the Sell screen, under the Production column, click on + Make… and choose + Make to order to create a Manufacturing order (MO) for all the products needed for this SO. The Production status for the SO will then change to Not started and Sales items availability changes to Expected.

You can create a separate MO for each required product by opening a SO, clicking on + Make… and choosing Make to order for each item row.

Manufacturing orders are added to the Schedule tab in the Make screen. From here, you can see the production schedule for your business. If you want to change the priority of an MO, simply drag-and-drop the order to where you want it.

If a MO is created from the Sell screen via the Make to order button, the MO will be automatically linked to the related Sales order. When a MO is created this way, the priority of these orders is linked between the Sell and Make screens. This means that when you drag-and-drop an SO to change priority, the priority of the linked MO in the Schedule tab will also be updated (and vice versa).

Read more about using the Schedule.

Step 3: Track material requirements

To manage your material requirements, create a Product Recipe / BOM for each Product. When you’ve done this, you can track the Ingredients availability of products for both Sales and Manufacturing orders.

Head to the Make screen and click on a MO in the Schedule tab to see a list of ingredients and their availability. You can also go to the Sell screen and open a SO where the Ingredients column displays Not available. Inside the SO card, click on Not available under the Ingredients column to see a list of any materials missing to make the product.

Note: When companies make products to order, they typically keep a certain amount of raw materials in stock to satisfy forecasted production needs. We suggest using Reorder points for materials in Katana to ensure there’s an optimal stock level for materials at all times. Learn how to set Reorder points and how to calculate appropriate Reorder points.

Step 4: Purchase missing materials

If the Ingredient availability for any materials is Not available, you'll need to create a Purchase order (PO) to buy the missing ingredients.

Click on a MO to see a list of required ingredients based on the Product recipe / BOM. When materials are missing, you can create a new PO.

There are multiple ways to create a PO, such as:

  • Opening a MO and clicking + Buy on the ingredient row

  • Clicking the global "+" sign and selecting + Purchase order

  • Going to the Sell screen, opening a SO with Not available ingredients, clicking on Not available under the Ingredients column, and choosing + Buy

  • Going to the Stock screen, selecting the Materials table, and clicking + Buy

When creating a PO from the Stock screen, take a look at the material’s Missing/Excess column. The number here is calculated based on all open Sales orders, Manufacturing orders, Purchase orders, and Reorder points for each material so you can create a PO based on the material’s “missing” number.

Learn more about using the Stock screen.

Remember, materials expected from Purchase orders are not permanently linked to any SO or MO. Material availability for orders always depends on priorities.

Once a PO is created, it will be added to the Buy screen where you can manage the Delivery status of all Purchase orders.

Since a PO can’t be sent directly from Katana to the supplier, you can create a PDF of the PO by clicking on the printer 🖨️ icon at the top right corner of the PO.

Step 5: Receive materials

When materials for a PO arrive at your warehouse, mark the Delivery status to Receive all (or Receive some if some materials are missing) and the materials will be added to your stock. The material availability status for a SO in the Sell screen or a MO in the Make screen will change to In stock when all the required ingredients are in stock.

Step 6: Make the product

Using Katana, you can manage production activities at an MO or a more detailed Production Operations level.

If you manage your production at the MO level, the team who make products can use the Schedule for their production plan by starting at the top MO and working down the list. They can update the Production status to Work in progress once they begin making the product and mark it Done when finished.

If you want to manage your team member’s tasks or workstations at a more detailed step-by-step level, you can open Tasks tab from the Make screen. To use the Tasks list, you’ll first need to define the Production Operations for your products. Production operations are specific steps that have to be completed to make a product (cutting, assembly, packaging, etc.).

You can assign each operation to a Resource (e.g. employee, workstation) which allows the Open table in the Task tab to be used as a detailed to-do list for each resource. Production operations related to Manufacturing orders are grouped by Resource.

When the last Production operation for a product is complete, the MO's Production status will automatically change to Done.

When the production of a MO is complete, the products are added to stock.

Step 7: Ship the product

Once all the required products are available, the Product availability status for a SO in the Sell screen will change to In stock. These Sales orders are ready to be shipped.

If you want to track packed, but not yet shipped products, mark the SO’s Delivery status as Packed. When the products are shipped, change the status to Delivered.

That’s it! You have fulfilled a customer order.

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