Make-To-Order: Still Just A Dream?

Jan. 13, 2005
Compiled By Deborah Austin "Pull" model supply chains -- such as Make-To-Order (MTO) -- remain elusive for most companies, suggests a recent white paper "Chasing the Make-To-Order Dream." Findings are based on discussion groups -- moderated by ARC ...
Compiled ByDeborah Austin "Pull" model supply chains -- such as Make-To-Order (MTO) -- remain elusive for most companies, suggests a recent white paper "Chasing the Make-To-Order Dream." Findings are based on discussion groups -- moderated by ARC Advisory Group, Dedham, Mass. -- with logistics/supply-chain executives at Richmond Events' The Logistics & e-Supply Chain Forum 2001. Biggest obstacles identified:
  • Meeting customer MTO expectations while suppliers require more-traditional lead times.
  • Existing infrastructure built for scale and volume, not MTO.
  • Proliferation of stock keeping units (SKUs).
  • Selling MTO to suppliers and customers requiring change in their own behavior.
In fact, most companies represented still base decision-making on forecasts versus "pull" models based on actual customer demand. The report is available free through project manager Jane Telfer at London/New York-based business-forum organizer Richmond Events, 212-651-8734 or [email protected].

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