In manufacturing, build to order refers to a batch of products exclusively manufactured after the client orders them.
The reason why some products are manufactured on a build to order basis are
- The product is highly specialized.
- Manufacturing such products are costly.
- If the products are not sold, it will be impossible to recover the cost.
- Keeping them in stock is too expensive.
There are other reasons behind a build-to-order product, but the main one is that we’re dealing with are custom devices, meaning the client is particular about what it needs from the product.
Sometimes we’re talking complete turnkey design and product manufacturing; sometimes, it could be partial customization of an existing product.
Examples of build-to-order products
- UV curing devices
- Custom automobiles
- Planes
Build-to-order products are risky because you will lose money if you don’t sell them; the factory will most likely charge you in advance.
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