<h2>Make to Order (MTO)</h2>
<p>Make to Order (MTO) is a manufacturing strategy where products are only produced once a customer has placed an order. This approach is commonly used in industries with diverse customer preferences, such as fashion, furniture, and custom automotive parts.</p>

<h2>How It Works</h2>
<p>MTO operates on a pull system, meaning production is initiated only when there's a confirmed order from a customer. Here's how it works:</p>
<ul>
  <li>Customer places an order with specific requirements.</li>
  <li>Manufacturer receives the order and confirms it with the customer.</li>
  <li>Production begins only after confirmation, using the customer's specifications.</li>
  <li>Once produced, the item is delivered to the customer.</li>
</ul>

<h2>Why It Matters for Businesses</h2>
<p>MTO offers several advantages, especially for businesses catering to diverse customer needs:</p>
<ul>
  <li><strong>Reduced Inventory Costs</strong>: Since products are made only when ordered, there's minimal inventory to store and manage.</li>
  <li><strong>Faster Response to Market Trends</strong>: MTO allows businesses to quickly adapt to changing customer preferences and market trends.</li>
  <li><strong>Higher Profit Margins</strong>: By producing only what's ordered, businesses can avoid markdowns and reduce waste, leading to higher profit margins.</li>
</ul>

<h2>Example</h2>
<p>Consider a furniture retailer using MTO. Instead of producing and storing a large number of sofas in various colors and fabrics, they only produce a sofa once a customer places an order, specifying their preferred color and fabric. This way, the retailer can offer a wide range of customization options without tying up capital in unsold inventory.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Make to Order is a manufacturing strategy where products are produced only after a customer has placed an order.</li>
  <li>MTO helps businesses reduce inventory costs, respond faster to market trends, and achieve higher profit margins.</li>
  <li>This strategy is particularly useful for businesses catering to diverse customer preferences.</li>
</ul>