We had a conversation long ago about BTO (build to order).
There are different approaches manufacturers use.
BTO, for build to order; DTO, for deliver to order; and BTM for build to market (forecasts).
These variants differ in important ways, even in the ways they distribute the benefits and costs of improved OTD across the value chain.
- A BTO approach uses the customer order as the initial signal for a pull manufacturing system. The customer reviews a copy of the vehicle, selects the trim, option, and color packages, then orders the configured vehicle.
- The DTO model calls for searching a local or regional geographical base for inventory, as well as vehicles already in the manufacturing queue, but not yet assigned to a particular customer.
- The BTM model calls for improving the accuracy of market forecasts used to generate build schedules, rather than relying directly on customer orders to trigger manufacturing.
The BTM - DTO systems dominant in the USA, but in Germany the BTO system is dominant.
About 50-55% of BMW BTO, as in they're sold before they're even build. In the USA the latest figures I have is that only 30% of BMW cars are BTO, witch is quite different from Europe (particularily some countries).
There was even a case with a
GCZ member (I think it was Giannis) who ordered a BMW via BTO and he/BMW told us when it was gonna be build.