Make-to-stock (MTS) manufacturers use historical item demand history,
blanket sales orders, and forecasts to drive production plans. Demand
forecasts push or drive downstream activities such as procurement,
component production, and resource scheduling.
MTS manufacturers often sell consumer products or proprietary items.
Examples include producers of discrete products like appliances,
consumer electronics, apparel, home goods, furnishings, and hardware.
Other MTS manufacturers use batch processing for beauty supplies,
food and beverage, and cleaning supplies. MTS companies tend to
be larger than make-to-order (MTO) businesses because standard
products are made and sold in larger quantities.
Customers are distributors, retailers, consumers, or business service
organizations, or commerce storefronts who collaborate on forecasts to
ensure ample supply for projected sales. Manufacturers may overstock
items to prevent stock-outs and costly rush orders. Overstock results
in obsolete inventory, inflated carrying costs, and low inventory turns
increasing warehouse overhead.
Modern ERP applications like Acumatica streamline MTS planning
processes with real-time insights into stock levels across locations.
Connected demand forecasting applications, blanket sales orders,
material planning, and scheduling work harmoniously to minimize
inventory levels while alleviating costly stock out situations.
This industry brief explains critical MTS business processes with an
overview of technology requirements and an ERP feature checklist.
Discover how peers thrive with a future-proof ERP platform designed
for MTS manufacturing.
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