Archive

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].