Producing to order

• Producing to order is a strategy in which a business only manufactures a product once an order for that product has been received from a customer
• Competitive advantage
• Can charge higher prices
• Stock management - only order in what you need when you need it - reduced cost of holding stock
• Could increase costs
• Can be influenced by supplier reliability
• Can be hard to meet orders in the time required
• Difficulty in planning of workforce, factory, warehouses and finance