Make To Order Replenishment in the Real Time Value Network™

Improve Available-to-Promise While Lowering Overall Operational Costs, Become Demand-Driven

 

Make-To-Order (MTO) or “pull” replenishment involves holding little to no finished goods inventories and producing to a specific customer order. Responsiveness and visibility are key for a successful MTO model. Many companies today are struggling to shift their replenishment process from Make-to-Stock (MTS) to MTO or some combination of MTS and MTO. The cloud-based Real Time Value Network™ offers a powerful Best Practice Template for the MTO or hybrid MTS/MTO environment that can give your company and entire supply network a competitive advantage.

Challenge: Most companies have already invested in systems and processes to reduce inbound supply chain related costs and improve manufacturing efficiencies, but have not received the anticipated returns. Furthermore, even operationally efficient companies are constrained by the current technology environment beyond their four walls.

Problems that ERP and current systems cannot solve:

  • Vertical systems that can’t integrate critical demand, supply and logistics data.
  • Long information lead times to translate demand from customers.
  • An inability to collaborate and coordinate domestic and international suppliers to replenish components and raw materials based on the forward demand signal
  • Systems that cannot synchronize the logistics capacity to deploy the materials and finished goods.
  • An inability to quickly mitigate inbound risks and outbound delivery constraints.

Solution: Connect to the Real Time Value Network and Subscribe to the MTO Replenishment Best Practice Template.

MTO Benefits

  • Improves customer service
  • Leverage existing ERP and legacy systems
  • Increases sell-through
  • Lowers operational costs
  • Reduces excess and obsolete inventory
  • Increases profitability
  • Improves supply chain staff productivity
  • Sustainability—reduce carbon footprint