Example of Make to Order Processing: Demonstrating Customized Production
Example of Make to Order Processing: Demonstrating Customized Production
Make to Order (MTO) is a business manufacturing approach wherein production is commenced only on the receipt of a confirmed customer order1. It entitles the customers to buy personalized items that fit their unique requirements1. It is a pull-type supply chain strategy as customer demand “pulls” the item production1.
Make to Order Process
Here is an example of a typical Make to Order process:
- Customer Order: The process begins when a customer places an order with unique requirements1.
- Order Confirmation: The company confirms the order and begins the production process1.
- Procurement of Raw Materials: All raw materials and components are procured only after the order confirmation from the customer1.
- Production: The company starts the production of the item based on the customer’s specifications1.
- Quality Check: The finished product undergoes a quality check to ensure it meets the customer’s requirements1.
- Delivery: The product is then packed and delivered to the customer1.
SaaS Products for Make to Order Processing
Several SaaS products can help businesses streamline their Make to Order processing. Here are a few examples:
- NetSuite: Offers a comprehensive suite of order management solutions, including order entry automation, inventory management, order fulfillment, and customer communication2.
- Zoho Inventory: Provides powerful inventory management features, including real-time inventory tracking, automated reordering, and multi-channel selling3.
- ShipStation: Offers robust shipping and order fulfillment features, including automated shipping label generation, rate comparison, and order tracking4.
- QuickBooks Commerce: Provides a range of order management features, including automated order entry, real-time inventory management, and multi-channel order fulfillment5.
- TradeGecko: Offers a powerful order management platform, including automated order entry, inventory management, order fulfillment, and customer communication3.
Conclusion
Understanding the Make to Order process is crucial for businesses that offer customized products. By leveraging technology and the right SaaS products, businesses can automate various steps involved in the process, thereby reducing processing time, enhancing customer satisfaction, and ultimately improving their operations.
Relevant Links
- NetSuite Official Website
- Zoho Inventory Official Website
- ShipStation Official Website
- QuickBooks Commerce Official Website
- TradeGecko Official Website
- Make to Order (MTO) – Definition, Advantages, Examples | WallStreetMojo
- Make to Order (MTO) or Made to Order: Definition and Example | Investopedia
- What is Make-to-Order? – Thomasnet
- Make To Order (MTO) – Overview, How It Works, Advantages | Corporate Finance Institute