Available-to-Promise (ATP)

What is Available-to-Promise?

“Available-to-Promise (ATP) is an essential concept in order processing and inventory management for retailers. It describes the function of determining when ordered items or services will be delivered to customers. The ATP calculation takes into account several relevant factors, such as current inventory, current orders and reservations, planned production, and typical delivery times.

ATP plays a central role in efficient supply chain management, enabling retailers to optimally manage their supply chains and increase customer satisfaction. By accurately planning available inventory and production capacity, stock shortages can be avoided and delivery deadlines precisely met. To achieve this, ATP systems use advanced algorithms and software solutions to process real-time data. Especially in areas such as retail, manufacturing and logistics, the effective use of the ATP concept is of enormous importance. Here, a tight link between inventory and supply chain management and customer satisfaction and overall business efficiency is critical. Through the ATP function, companies gain improved resource management and are able to optimize their supply chains. As a result, they are able to meet their customers’ needs more accurately by having a clear view of which products will be available and within what timeframe. This enables retailers to strengthen their market position and increase their competitiveness and sales.

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