Made-to-order vs made-to-stock: which fits your business?
Compare made-to-order (MTO) and made-to-stock (MTS) production, the trade-offs, and how to mix them.
Updated 15 October 2026
Made-to-stock (MTS)
You build products ahead of demand and sell from stock. Customers get fast delivery, but you need cash for finished goods and risk leftovers.
Made-to-order (MTO)
You start building only after an order arrives. You hold mostly raw materials, so there's less waste, but customers wait longer.
The hybrid many makers use
Keep popular products or sub-assemblies in stock and finish or personalise them to order. This shortens lead times without tying up cash in every variant.
What to track in each model
MTS: finished goods levels and reorder points for products. MTO: raw materials and sub-assemblies, plus how many orders you can fulfil from parts on hand.
Track parts, builds and stock in one place
Stoccly keeps BOMs, production and reorder points in sync for small makers.
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