Built-to-Stock

Built-to-Stock (BTS), also known as Make-to-Stock (MTS), is a manufacturing principle aimed at the mass production of goods without direct customer reference. In this approach, products are manufactured in large quantities and stocked in advance in a warehouse to ensure rapid availability for distribution. In contrast to Built-to-Order (BTO), with BTS production is not triggered by the receipt of customer orders, but is planned based on forecasts and expected demand.

Features of built-to-stock:

  1. Mass production: products are manufactured in large quantities to take advantage of economies of scale and reduce production costs per unit.
  2. Standardization: As the products are not customer-specific, the manufacturing processes and product characteristics are standardized, which leads to efficient production.
  3. Stockpiling: The finished products are stored in a warehouse to ensure continuous availability for distribution and to shorten delivery times.
  4. Risk minimization: By keeping finished products in stock, companies can minimize the risk of supply bottlenecks and production downtime due to unexpected fluctuations in demand.
  5. Fast delivery times: As products are already pre-stocked and available in the warehouse, orders can be processed quickly and delivery times shortened.

Built-to-stock logistics:

Logistics companies play an important role in managing and optimizing inventory levels and distributing finished products. They take on tasks such as storage, picking, packing and shipping preparation to ensure an efficient and smooth supply chain.