Navigating Make-to-Order vs Make-to-Stock in 2025 and Beyond

Navigating Make-to-Order vs Make-to-Stock in 2025 and Beyond

Navigating Make-to-Order vs Make-to-Stock in 2025 and Beyond

Navigating Make-to-Order vs Make-to-Stock in 2025 and Beyond

Hesh consolidates production processes for enhanced organization and supervision
CORPORATE OFFICER AND ADVISOR, STRIPE

Claire Hughes Johnson

PRESIDENT, PRODUCT AND BUSINESS, STRIPE

Will Gaybrick

HEAD OF GLOBAL SALES, STRIPE

Eileen O'Mara

REVENUE AND FINANCIAL MANAGEMENT, STRIPE

Vivek Sharma

HEAD OF PRODUCT MARKETING, STRIPE

Tanya Khakbaz

FOUNDER, PULLEY

Yin Wu

View on desktop.

Business

Hesh consolidates production processes for enhanced organization and supervision
CORPORATE OFFICER AND ADVISOR, STRIPE

Claire Hughes Johnson

PRESIDENT, PRODUCT AND BUSINESS, STRIPE

Will Gaybrick

HEAD OF GLOBAL SALES, STRIPE

Eileen O'Mara

REVENUE AND FINANCIAL MANAGEMENT, STRIPE

Vivek Sharma

HEAD OF PRODUCT MARKETING, STRIPE

Tanya Khakbaz

FOUNDER, PULLEY

Yin Wu

View on desktop.

Business

Hesh consolidates production processes for enhanced organization and supervision
CORPORATE OFFICER AND ADVISOR, STRIPE

Claire Hughes Johnson

PRESIDENT, PRODUCT AND BUSINESS, STRIPE

Will Gaybrick

HEAD OF GLOBAL SALES, STRIPE

Eileen O'Mara

REVENUE AND FINANCIAL MANAGEMENT, STRIPE

Vivek Sharma

HEAD OF PRODUCT MARKETING, STRIPE

Tanya Khakbaz

FOUNDER, PULLEY

Yin Wu

View on desktop.

Business

Manufacturing workflows are transforming from traditional make-to-stock models that rely on demand forecasts towards more agile make-to-order approaches offering mass customization. Here we explore this shift and provide guidance on optimizing planning.

The Problem with Make-to-Stock

Make-to-stock has been the standard operating model for generations of manufacturers. By producing goods to stock based on projected demand, companies seek to buffer against volatility while reducing lead times.

But demand forecasting is far from an exact science. Seasonal swings, economic events, competitor moves and changing consumer preferences all collide to undermine even the most rigorous projections. The result? Inventories ballooning out of control or panic-inducing stockouts.

The Appeal of Make-to-Order

Make-to-order sidesteps demand uncertainty by only producing after securing a customer order. This eliminates the risk of overproduction by linking supply directly to real-time demand. Enabling customization also allows manufacturers to address niche preferences missed by mass market goods.

Technology is accelerating this trend by facilitating rapid prototyping, flexible production methods, and tracking of bespoke components across supply chains. The promise? Virtually limitless product varieties produced at optimized volumes.

Charting the Right Course

In reality, few manufacturers dwell exclusively in the make-to-stock or make-to-order realms. Maintaining some finished goods buffer against spikes while offering tailored catalogue options is often ideal. The art lies in aligning production strategies with product characteristics and market conditions.

Make-to-stock suits low complexity commodities with steady demand. Make-to-order excels where personalization is valued and demand less predictable. Highly modular products blending standardization with varied accessories can achieve the best of both models.

HESH enable the level of operational control and visibility manufacturers need to calibrate supply and demand across multiple workflows. The future belongs to those who leverage technology to navigate flexibility at scale.

Let's try HESH

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© 2024 Hesh Inc.

Let's try HESH

Підпишіться на нас:

© 2024 Hesh Inc.

Let's try HESH

Підпишіться на нас:

© 2024 Hesh Inc.

Let's try HESH

Підпишіться на нас:

© 2024 Hesh Inc.