What is the Full Form of MTO?

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The full form of MTO is Make to Order or Made to Order. It refers to a popular business strategy that allows customers to purchase products customized to their individual specifications. Moreover, it is a manufacturing process in which the final production begins only after the manufacturer receives a confirmed customer order. In this way, MTO differs from the conventional mass production process that includes producing a standardized product to the exact specifications. 

Also Read: What is the Full Form of BSI?

Examples of MTO

You can implement the MTO strategy across different industries ranging from automotive and manufacturing to textiles and electronics. Here are a few examples to give you a better understanding of the same:

  • Customized clothing
  • Foodservice
  • Specialty parts
  • Jewellery
  • Customized cars
  • Customized computers

Also Read: What is the Full Form of SCVT?

Advantages of Using the Make-to-Order Strategy

The MTO business strategy has become increasingly popular over the last few years. Here are the top advantages of implementing it:

  • Businesses can offer a wide range of products to accommodate the requirements of different consumers. 
  • This strategy can help customers differentiate between your products and the products offered by your competitors in the market.
  • Businesses can use the MTO strategy to cut down inventory costs as they do not have to store large quantities of finished products.
  • By producing products only after a confirmed order has been placed, companies can improve their cash flow. 
  • Reduced wastage and improved efficiency are also some of the advantages of using the MTO strategy. 

Difference Between MTO vs. MTS

Here are a few key differences between MTO and MTS. 

Make to OrderMake to Stock
It refers to a strategy where products are created after receiving the confirmation. Products are created and stocked based on an estimate of customers’ demand.
There is a lag time between the order and final delivery. There is less time lag. 
The products can be customized according to the consumer. Consumers cannot customize their products. 
The volume of production is small.The volume of production is high. 

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