
With ever-changing demand in fashion and apparel, catering to diverse customer preferences is crucial. Two key production strategies – Make-to-Order (MTO) and Make-to-Stock (MTS) – offer distinct manufacturing process advantages for apparel and footwear brands. There really is no traditional production strategy in today's commerce. Choosing the right one, or both can make all the difference meeting customer demand and achieving your success.
Make-to-Order (MTO):
Step into your customer's shoes: The make to order strategy lets you create bespoke shoes and garments, catering to individual tastes and sizes. Imagine a customer crafting their dream jacket – choosing the cut, fabric, and even embroidery. Make to Order makes this customization possible, fostering high customer satisfaction and brand loyalty.
Limited inventory, endless possibilities: Ditch the warehouse of unsold styles. For make to order companies, production aligns with actual orders, minimizing excess inventory and wasted resources. This flexibility allows you to adapt to trends quickly, offering limited-edition pieces or responding to sudden shifts in demand.
Challenges to consider: Lead times might be longer, as each item is crafted individually. Efficient supply chain management becomes essential to ensure timely deliveries. MTO may also require higher production costs due to smaller batch sizes.
Ideal for:
- Luxury brands: Offering bespoke, high-end garments and shoes, where exclusivity and personalization are key.
- Niche brands: Catering to specific customer segments with unique needs, like athletic wear for different body types.
- Sustainable brands: Minimizing waste and environmental impact by producing only what's ordered.
Make-to-Stock (MTS):
Ready to wear, ready to sell: Make to stock manufacturing strategy allows you to anticipate popular styles and stock shelves with trendy designs. Customers find their perfect fit right away, leading to quick sales and happy shoppers.
Economies of scale: Bulk production translates to lower per-unit costs, boosting your profit margins. You can leverage efficient forecasting models to predict demand and optimize inventory levels, minimizing the risk of unsold items.
Challenges to consider: Predicting trends accurately can be tricky. Overstocking unpopular styles can lead to clearance sales and lost profits. Adapting to sudden shifts in demand might be slower with pre-produced inventory.
Ideal for:
- Fast-fashion brands: Keeping up with the latest trends by quickly replenishing popular styles based on demand.
- Footwear companies: Offering a variety of sizes and styles for immediate purchase, especially for basic and popular shoe designs.
- Large retailers: Stocking inventories to cater to high customer traffic and immediate purchase needs.
And Then There's Build to Order:
Build to Order (BTO) is a production strategy where products are manufactured only after a customer's order is received, similar to Make to Order (MTO). However, BTO typically involves more complex, customizable products and may include design and engineering processes specific to each order. This method is particularly useful for industries where products are highly customizable and have a significant variation in customer preferences. BTO allows for a high degree of personalization and usually caters to niche markets or specialized products, differentiating it from the more standardized approach of Make to Stock (MTS).
Making the Right Choice:
The best manufacturing method depends on your brand's identity, target audience, and budget. Can you create a hybrid approach, offering BTO, MTO customization, and MTS staples?
In addition to understanding and selecting the right manufacturing strategy, it's crucial for fashion businesses to choose the appropriate business software. This software should seamlessly facilitate all manufacturing strategies, from MTO to MTS to BTO, while also effectively managing multi-channel sales processes. The right software solution can streamline operations, improve efficiency, and ensure a cohesive business model adaptable to varying market demands and customer preferences.
Remember:
- Customer preferences: Prioritize the kind of experience you want to offer – exclusive customization or immediate availability.
- Brand DNA: Align your production strategy with your brand's values – sustainability through Make to Order or mass appeal through Make to Stock.
- Market dynamics: Understand your niche and anticipate demand patterns to make informed production decisions.
By carefully considering your options, you can tailor your production strategy to become a fashion leader, one stitch (or shoe) at a time.