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Make to Order


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

Make to order [MTO] describes a ‘pull’ manufacturing strategy in which goods are only built or assembled when a customer order is received.  The approach is an alternative to ‘make to stock’, in which case goods are produced in anticipation of customer orders.  Some online computer companies manufacture components to stock, and then engage in ‘late customisation’ to assemble a combination of components specified by the customer.  This is a hybrid strategy with a decoupling point between make to stock - the components - and make to order - the finished computer.  See also Agility, Lean Manufacturing and Make to Stock.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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