Built-to-Order

Built-to-order (BTO), also known as make-to-order (MTO), is a logistical principle that aims to manufacture or assemble products only after a customer order has been received. In contrast to a stock of finished products, with BTO production is only triggered once an order has been received. This allows companies to offer customized products and minimize stock levels.

Features of Built-to-Order:

  1. Customized manufacturing: Products are manufactured according to the customer’s specific requirements and wishes, enabling a high level of product customization.
  2. Flexibility and agility: By manufacturing to order, companies can react quickly to changing customer requirements and introduce new product variants.
  3. Minimization of stock levels: Because products are not made to stock, inventory levels can be reduced, lowering warehousing costs and minimizing the risk of overstocking.
  4. Shorter lead times: As production only begins once an order has been received, companies can reduce lead times and optimize delivery times for customers.
  5. Closer customer loyalty: By providing customized products, companies can strengthen customer loyalty and retain customers for the long term.

    Built-to-order logistics:

Logistics companies play an important role in implementing the BTO principle, especially when it comes to organizing and managing the supply chain. They are often responsible for the procurement of raw materials and components, the storage and picking of components and the distribution of finished products. Furthermore, logistics companies can also take on additional services such as packaging, labeling and returns processing on behalf of the manufacturer.

Synonyms:
Auftragsfertigung