Creating products to the exact specifications a customer needs is called build-to-order manufacturing. As with all manufacturing processes, build-to-order has its advantages and disadvantages. Here are just a few of those advantages:
Specialization
The most obvious advantage of the build-to-order strategy is the ability to specialize each product for the customer. It’s much easier to meet the customer’s criteria with this strategy, and they are more likely to walk away satisfied with the outcome.
No Extra Inventory
This strategy also eliminates unnecessary inventory from clogging the shelves. By creating only what is requested by the customer the company wastes less time and money making products that won’t sell.
There are some disadvantages, such as having a low supply of items and a longer wait time for customers. This strategy can also be more time-consuming. In the move towards more of a lean manufacturing system the company doesn’t produce product until an order is received which can result in longer lead times. However many customers will value the specialization the strategy allows.