Bridging Two Production Models for Greater Flexibility and Efficiency
In modern manufacturing, companies often deal with two different production strategies: Make-to-Order (MTO) and Make-to-Stock (MTS). MTO focuses on producing items only after receiving a customer order, minimizing inventory costs but requiring longer lead times. On the other hand, MTS relies on forecasting to produce goods in advance, allowing for faster delivery but with a risk of overproduction or excess stock.
Balancing both strategies within a single operation can be complex—but this is where a smart MRP (Material Requirements Planning) system plays a key role. With the right setup, businesses can run both MTO and MTS simultaneously while maintaining full visibility and control over their production process.
How MRP Combines Make-to-Order and Make-to-Stock in One System
1. Unified Planning for Both Order Types
An advanced MRP system enables businesses to define separate rules for MTO and MTS products. This means the system can generate production or purchase orders automatically based on real-time sales orders (MTO) or forecasts (MTS), all in one unified environment.
2. Real-Time Inventory Management
MRP monitors current stock levels and anticipated demand, ensuring that stock for MTS products is always replenished on time, while materials for MTO items are ordered only when needed. This reduces the risk of overstock and ensures raw material availability.
3. Flexible Scheduling and Capacity Allocation
The system can prioritize urgent MTO orders while still maintaining stock production for forecasted items. MRP dynamically allocates resources—machines, labor, and materials—based on deadlines, demand, and availability.
4. Accurate Forecasting and Demand Planning
MRP systems often integrate with sales and CRM data to forecast demand for MTS products while adapting to actual incoming MTO orders. This gives companies a more balanced, responsive production schedule.
5. Seamless BOM and Routing Management
Whether the product is made to order or made to stock, MRP keeps the bill of materials (BoM) and routings consistent and updated, ensuring standardized processes and quality control.
6. Centralized Reporting and Traceability
MRP provides complete traceability from sales order to final delivery—useful for both production models. This allows business leaders to monitor efficiency, identify waste, and continuously improve.
MRP Batam: A Scalable Solution for Dual Production Models
MRP Batam, powered by Odoo and implemented by SGEEDE, helps manufacturers manage both MTO and MTS strategies in one centralized system. This is especially beneficial for businesses in Batam’s growing industrial landscape, where companies often serve both custom-built and mass-market needs.
With MRP Batam, your team can:
- Set up MTO/MTS workflows easily
- Automate raw material purchasing and work orders
- Gain real-time insights into stock levels, work centers, and delivery status
- Scale operations without losing control or visibility
Whether you’re producing complex custom orders or maintaining fast-moving stock items, MRP Batam offers the flexibility and control to do both efficiently.
Conclusion
Managing Make-to-Order and Make-to-Stock production under one roof doesn't have to be complicated. With a well-designed MRP system like MRP Batam, businesses can enjoy the best of both worlds—customization without chaos, and efficiency without overstocking.
If your company is looking to balance flexibility with operational discipline, now is the time to invest in a modern MRP solution built for today’s hybrid manufacturing demands.