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built to order (BTO)

Built-to-order (BTO), often also referred to as made-to-order (MTO), which stands for "manufacturing to order" in German, is a production process used by companies. As soon as a confirmed order is received, the product is manufactured according to the individual customer specifications.

This strategic approach to production offers a number of advantages to the companies using

it.One of the most important is that the capital employed (also referred to as working capital) is significantly lower than in conventional production processes with corresponding warehousing of finished products. In industries with rapidly falling prices or even rapid technological development, such as computer hardware

, manufacturing to order is a competitive advantage. The DELL company has grown to become one of the world's largest computer manufacturers with this strategic manufacturing advantage.

In this context, see also the concept of mass customization.

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Englisch: built to order - BTO
Updated at: 04.04.2012
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