BTO

BTO stands for “Built-to-Order” and describes a production strategy in which products are only manufactured after an order has been placed and payment received. This enables companies to minimize their stock levels and respond to individual customer requirements. In contrast to mass production, where products are manufactured in stock, BTO allows for greater flexibility and personalization. Customers can often customize their products according to their own needs, resulting in higher customer satisfaction. BTO is often used in industries where high product variety and customized solutions are required, such as automotive, electronics and furniture manufacturing.

Companies using the BTO strategy must be able to respond quickly to orders and adapt production processes accordingly. This often requires close cooperation between different departments such as sales, production and the supply chain. Efficient communication and a well-coordinated flow of information are crucial to ensure that products are manufactured on time and according to customer specifications.

The benefits of BTO lie in the reduction of stock levels and storage costs, as products are only manufactured as required. This also helps to avoid overproduction and therefore reduce waste. In addition, BTO enables new products to be brought to market more quickly, as companies can react flexibly to changing market requirements.

For customers, BTO offers the opportunity to adapt and customize products according to their own ideas. This can lead to higher product satisfaction and customer loyalty. However, BTO can also mean longer delivery times and higher production costs, as the manufacture of individual products is often more costly than mass production.