Capterra Glossary
Capable-to-promise (CTP) Systems
Capable-to-promise (CTP) systems enable companies to fulfill customer orders within a particular time frame. These systems measure or predict inventory and production/resource capacity so businesses can manage supply and demand effectively. CTP tools take into account factors such as production capacities, constraints, planned work, work in process, availability, equipment, labor, and materials. They can analyze multiple components of a supply chain network and its production processes, including supplier networks, to calculate time-critical order fulfillment workflows.
What Small and Midsize Businesses Need to Know About Capable-to-promise (CTP) Systems
SMBs use CTP systems to ensure they have the inventory and resources to fulfill customer orders within a specific timeframe. They can improve production efficiency, delivery performance, and the customer experience, resulting in more successful sales outcomes.