Make to Stock (MTS)

Introduction

Make to Stock (MTS) is a production strategy where goods are manufactured for inventory before customer orders are received. Based on forecasts and historical demand data, it aims to ensure high availability and fast delivery while maintaining efficient use of resources.

With modern MES, BDE, and OEE systems, Make to Stock has evolved into a data-driven, agile manufacturing approach that reduces inventory costs and boosts responsiveness.

How Make to Stock Works

1. Demand forecasting using historical data and market analysis.

2. MES-driven production planning to schedule and prioritize manufacturing orders.

3. BDE data collection for real-time monitoring of performance, output, and downtime.

4. OEE analysis to measure efficiency, availability, and quality in stock production.

5. Inventory management with automated ERP integration for live stock updates.

Benefits

• Faster delivery times through ready-to-ship inventory.

• Stable production planning with predictable workloads.

• Economies of scale through high-volume efficiency.

• Enhanced quality control with MES and OEE insights.

• Higher customer satisfaction due to reliable availability.

Challenges and Digital Solutions

• Forecasting errors: AI-driven analytics improve demand accuracy.

• High inventory costs: Lean and Just-in-Time principles reduce stock levels.

• Lack of visibility: Integrated MES, BDE, and OEE systems provide real-time transparency.

Example

An electronics manufacturer adopted a cloud-based MES to automate Make-to-Stock planning. Orders were generated dynamically from demand data and monitored in real time.
Results:

• 25 % lower inventory costs

• 15 % shorter lead times

• Improved delivery reliability across regions

Conclusion

Make to Stock remains essential in markets with stable or predictable demand.
By integrating MES, BDE, and OEE, manufacturers gain the agility to balance efficiency, cost, and responsiveness — transforming stock production into a smart, data-driven process.