TALKING

Build-to-order , BTO or make-to-order , MTO manufacturing is a sizable part of the customisation space . MTO ’ s attraction to a business is obvious . Design , assembly , and distribution are driven by customer fiat . MTO holds much in common with lean manufacturing , which is designed to minimise waste and maximise productivity .

But it differs from make-to-stock , in that MTS does not wait for an order to start production . It manufactures in bulk , which runs the risk of units sitting on shelves unpurchased . Even though bulk production is cheaper , each unit still carries a cost and if it does not sell , cash flow issues can arise , especially if the lack of interest in the product also occurs in bulk .

In MTO , businesses deal in much smaller batches , but they can offer more choice . Consumers will be drawn to such a brand , of course , but so will B2B customers . A business that uses a traditional MTS supplier will have to adjust to what is available , whereas those that use MTO partners will never have to compromise on their business model .

While some industries such as the consumer automobiles and personal computers sectors are obvious MTO targets , the practice can be applied to almost all manufacturing businesses that are intent on cutting costs , reducing waste , and becoming more sustainable .

But let us take apparel as a case study . The UAE is home to a booming US $ 17.5-billion textile industry and is poised to become a textile hub . If these businesses were to consider an MTO future , they might seize an abundance of market opportunities as the competition heats up .

Made-to-order garments may finally put a dent in the global fashion industry ’ s notorious materials waste . This waste has been exacerbated by the rise of fast fashion . According to one report , between 2000 and 2015 , global production volumes doubled while the average number of times clothing was worn dropped by more than a third , 36 %. The UAE has an opening to become a leader in sustainable development . By moving to the MTO model in the fashion industry it can help meet the Responsible Consumption and Production goals of its sustainability strategy .

For the MTO manufacturer , cashflow issues are greatly diminished and other benefits include reduced storage costs , less waste , and higher quality . It is true that companies that take this route will have to manage customer expectations more deftly , due to longer lead times and also deal with the production complexities that come from catering to more customer preferences and managing more SKUs .

But if the business procures the right technology platform , the benefits of MTO come shining through , far outweighing any downsides .

The digital solution will allow production managers to break down the MTO process , gauge customer demand , and design a workflow that allows efficient operations , an order comes in ; the chosen product is built to specification from on-hand or quickly sourced components ; the produced item goes through a quality check ; the order is shipped .

While this may seem complex when done outside traditional bulk-production models , the new workflow is still subject to automation to speed up production , slash costs , and enhance quality even further .

Vibhu Kapoor , Regional Vice President , Middle East , Africa and India , Epicor

In MTO , businesses deal in much smaller batches , but they can offer more choice .

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