What is a Make-To-Order (MTO) Supply Chain Strategy?
A Make-To-Order (MTO) Supply Chain Strategy is a plan designed to optimize the process of creating goods and products based on specific customer orders. The strategy outlines the steps and actions necessary for a successful make-to-order operation, including creating a supply chain that is agile and efficient enough to meet customer demands. It is important to develop a make-to-order strategy that can scale with the growth of a business in order to ensure customer satisfaction.
What's included in this Make-To-Order (MTO) Supply Chain Strategy template?
- 3 focus areas
- 6 objectives
- 6 projects
- 6 KPIs
Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.
Who is the Make-To-Order (MTO) Supply Chain Strategy template for?
The Make-To-Order (MTO) Supply Chain Strategy template is designed for manufacturing and supply chain teams to create strategies for make-to-order operations. This template helps teams identify and define objectives, set measurable targets, and develop projects to achieve these targets. This template also provides a framework for teams to track the success of their make-to-order strategy and make adjustments as needed.
1. Define clear examples of your focus areas
When crafting a Make-To-Order (MTO) Supply Chain Strategy, it is important to identify and define the focus areas that the strategy will aim to improve. These focus areas will act as the overarching goals that the strategy is meant to achieve. Examples of focus areas for an MTO Supply Chain Strategy could include improving order fulfillment, minimizing stockouts, and ensuring product quality.
2. Think about the objectives that could fall under that focus area
Once the focus areas are identified, it is important to define the objectives that will support each focus area. Objectives should be specific and measurable, and should be crafted with the customer in mind. For example, objectives for improving order fulfillment could include reducing lead time, streamlining order entry and processing, and minimizing stockouts.
3. Set measurable targets (KPIs) to tackle the objective
Measurable targets, or Key Performance Indicators (KPIs), should then be set for each objective. KPIs should be measurable and time-bound, and should include an initial baseline as well as a target goal. These targets should be realistic and achievable, and should be tailored to the specific objectives. An example of a KPI for the focus area of Improve Order Fulfillment could be: Decrease avg processing time from 3.5 days to 2.5 days.
4. Implement related projects to achieve the KPIs
Once the objectives and KPIs are defined, related projects should be implemented in order to achieve the targets. These projects, also known as actions, should be specific and actionable steps that will help the team reach their KPIs. Examples of projects for an MTO Supply Chain Strategy could include streamlining order entry and processing, implementing just-in-time inventory control, and establishing a quality assurance process.
5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy
Cascade Strategy Execution Platform is a powerful tool for organizations of any size and industry. It provides teams with a comprehensive, platform to track the progress of their strategy. Cascade platform can help teams develop and execute strategies faster, and can provide visibility into the performance of their operations.