The collection of processes associated with producing sales order specific products. The purpose of Make-to-Order is to produce or finalize products based on actual customer orders and/or customer configuration.
Make-to-Order is a supply chain configuration of the Make process that requires the customer order to be reflected in the Make process without aggregation/disaggregation. This typically means the customer order is trackable and traceable through the manufacturing process. A customer order cancellation will impact a specific production order directly.
Make-to-Order is the Make process that facilitates the MTO Supply Chain Strategy.
- Menu-driven configurable products
- Customization postponement
- Supply chains where manufacturing and distribution lead times do not exceed customer accepted order cycle times
- Manufacturing facilities where products change-overs are fast and low cost or cost neutral
- In Retail: Mix paint colors, cut deli meat to customer specification, cut lumber to length