What Does Build to Order Mean?

Build to Order Definition

Build to order is a production methodology that requires a customer order to be placed before any products are produced. This methodology was developed to help companies increase efficiency and is often used when products are either highly customized or demand for them is low.

Build To Order


What is design to order?

Design to order is a manufacturing approach in which the individual parts of a product are designed and assembled according to a specific customer order.

*Source: https://oroox.com/en/design-to-order

What's assemble-to-order?

Assemble to order is a manufacturing approach in which products are assembled upon receipt of an order. Basic product parts are planned and stocked in anticipation of the order. Once the order is received, the parts are quickly assembled, and the final product is delivered to the customer.

*Source: https://www.investopedia.com/terms/a/assemble-to-order.asp

What are the differences between build to order and build to stock products?

Build to order products are linked to a specific sales order, whereas build to stock products are based on sales projections or anticipated customer demand. Unlike build to stock products which are mass-produced, build to order products are more customized and require longer lead times for delivery.

Source: https://www.thomasnet.com/insights/make-to-order-vs-make-to-stock/

What's a build to order supply chain?

A build to order supply chain (BOSC) is a demand-driven manufacturing approach in which products are built according to the requirements of individual customers at competitive prices within a short time period. By leveraging the capabilities of outsourcing and information technology, BOSC eliminates the forecasting, inventory, and setup required to customize products—resulting in significant cost savings.

*Source: https://www.academia.edu

The Cost

Delivering new products to market is challenging. And it is difficult to see the cost impact of one or more mistakes.

Try our calculator to estimate the impact on your business. Input your business details, select a challenge, and see the real-world cost impact as validated by our customers.