# Make-to-Order (MTO) Supply Chain Model

*Last updated: 2026-06-25*

> In the Make-to-Order (MTO) supply chain model, a confirmed customer order triggers production—nothing is manufactured speculatively for stock.

In the Make-to-Order (MTO) supply chain model, a confirmed customer order triggers production—nothing is manufactured speculatively for stock. This eliminates inventory carrying costs and removes the risk of unsold or obsolete goods, since output matches actual demand rather than forecasts. The model is widespread in machinery, furniture, printing, and electronics, where customers define configuration, dimensions, or colour. The trade-off is lead time: unlike Make-to-Stock (MTS), the customer waits for production to complete before shipment. MTO is frequently paired with just-in-time raw material procurement to keep supply-side inventory equally lean.

**Source:** [https://en.wikipedia.org/wiki/Make-to-order](https://en.wikipedia.org/wiki/Make-to-order)

## Quick Facts

| Property | Value |
|---|---|
| Term | Make-to-Order (MTO) Supply Chain Model |
| Language | EN |
| Word count | 89 |
| Last updated | 2026-06-25 |
| Source | https://en.wikipedia.org/wiki/Make-to-order |

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