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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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
