In today’s dynamic markets, where customer-specific demand and swift delivery are crucial competitive elements. Engineer-to-order and customized manufacturing methods are becoming more and more important due to high product variability, erratic demand, and complex planning needs. Because of this, ETO systems are more difficult than mass manufacturing. This systematic literature review (SLR) focuses on the challenges and solutions proposed by companies in the engineer-to-order (ETO) manufacturing industry accordance with Lead time optimization, production planning, and profitability. This review paper is structured as follows. Section 1 provides the Introduction of the review. The findings of studies that are indexed in the Web of Science (WOS) and Scopus databases are synthesized using the PRISMA approach (Sect. 2). Although ETO companies are the main focus of the review, Sect. 3 discusses common problems (Sect. 1) that affect both mass customized manufacturing and ETO models. Considering this, the review is especially helpful for scholars, researchers, and business executives who are interested in both kinds of industrial settings. The review covers the following industries: shipbuilding, metallurgy, steel fabrication, automation technology, metallurgical, process, and machine and plant manufacturers. The review Sect. 3 addresses a number of solutions, such as conceptual approaches, mathematical models, operational strategies, theoretical frameworks, and strategic solutions. The study illustrates the significance of establishing cost-effective, scalable, and accessible models specifically for start-up companies. The paper concludes with a promising avenue for future research in Sect. 4.