This study investigates the determinants of Customer Order Decoupling Point (CODP) placement and its impact on supply chain performance within Bangladesh’s furniture industry, using a reputed furniture company as a case study. A Partial Least Squares Structural Equation Modeling (PLS-SEM) approach was employed to examine how Product Customization (PC), Production Flexibility (PF), and Manufacturing Strategy (MS) influence CODP positioning, and how CODP subsequently affects Lead Time Performance (LTP), Service Level (SL), and Cost Efficiency (CE). Data were collected through structured questionnaires from supply chain and operations personnel. The measurement model demonstrated strong reliability and validity (α = 0.72–0.94, CR = 0.83–0.96, AVE = 0.63–0.89).  CODP was well explained (R² = 0.809), with PC having a significant positive effect, whereas PF and MS were not significant. CODP placement significantly reduced SL and CE but did not affect LTP. The findings show that high customization shifts CODP downstream, increasing responsiveness but raising costs and lowering service levels. The study proposes strategies such as modular design, limited buffers, preconfigured components, and ERP-based scheduling to mitigate these trade-offs. This research contributes context-specific empirical evidence for optimizing CODP positioning in Bangladesh’s emerging furniture manufacturing sector.