BTS

BTS stands for “Built-to-Stock” and describes a production strategy in which products are manufactured in advance and kept in stock in order to be able to respond to immediate customer demand. In contrast to “Built-to-Order” (BTO), where products are only manufactured after an order has been placed and payment received, BTS enables standard products to be available quickly.

Companies that use the BTS strategy produce their products in large quantities and store them in their distribution centers or branches. This allows them to respond quickly to customer orders and minimize delivery times. BTS is often used in industries where demand for standard products is relatively stable and fast delivery to customers is important, such as the retail, food and electronics industries.

The advantages of BTS lie in the rapid availability of products and the ability to respond to unforeseen fluctuations in demand. By stocking standard products, companies can also benefit from economies of scale and reduce their production costs. In addition, BTS enables more efficient use of production capacity and better supply chain planning.

For customers, BTS offers the opportunity to purchase products immediately without having to wait for individual production. This can lead to higher customer satisfaction and improved brand loyalty. However, BTS can also lead to higher inventory levels and therefore higher storage costs, especially if demand for the stored products falls or changes.