What is Make-to-Order (MTO)?
Make-to-Order is a production strategy where manufacturing begins only after a customer order is received, allowing customisation but resulting in longer lead times for the customer.
MTO vs Make-to-Stock
Make-to-Stock (MTS): produce based on forecast, maintain finished goods inventory, immediate availability. Make-to-Order (MTO): produce only on confirmed orders, no finished goods stock, customisation possible, longer customer wait. Engineer-to-Order (ETO) takes this further — even the design is customised per order.
MTO in ERPNext
Configure ERPNext for MTO by linking Production Plan to Sales Orders only (not forecast). Set the Work Order's Sales Order link to trace production to a specific customer. The Sales Order shows production status (% complete) so the sales team can give customers accurate delivery updates.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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