7 Points Why Your eCommerce Business Need Custom Merchandise Online
Different companies use different manufacturing strategies to meet customer orders. Some make goods only after orders are received, while others produce goods and deliver them to retailers where customers buy them in the store.
The order fulfilment process can be broken down into production lead time, how long the product takes to produce, and the demand lead time quoted by the customer.
Depending on the lead time ratio and product type, the Print-On-Demand eBay has several basic strategic order fulfilment product options to choose from and often combine one or more to meet market demand.
1. Build to Order (BTO)
Also known as Make to Order (MTO), the BTO strategy applies only when a confirmed order for the product. BTO is the oldest style of order fulfilment and is commonly used for highly customizable or low volume products such as automobiles and aeroplanes.
It can also be used for other highly configurable products such as bikes or computer servers. The main advantage of the BTO approach in a high product diversity environment is the ability to supply the customer with accurate product specifications, low sales discounts and low risk of stock obsolescence with finished goods inventory for eBay Print-On-Demand.
The biggest disadvantage is that manufacturers are sensitive to fluctuations in market demand, which can reduce capacity utilization in production. The most effective approach uses active demand management.
Academic researchers are still studying how to effectively use BTO and BTS without compromising operational stability and production requirements.
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