What does it mean "to order"?

term on order describes the production of goods for the demand of the customer. It contrasts with in stock, in which the goods are fully produced and supplied in the inventory, waiting for the customer's order. Order production strategy offers a number of advantages, including reduced inventory space and the ability to offer product adaptation. There may also be reasons for taxes, why the company would choose this strategy. On the other hand, it takes to complete and send products.

In the order strategy, components of each product are kept in stock. Once the device receives the customer's order, the product is assembled, packed and sent. Such orders can be for individual units or large benefits, depending on the company's policy, the type of item and the needs of the customer.

One of the main advantages of this production strategy is the ability to offer customers their own or semi -slip product. This could include the possibility to choose colors, materials and even size. Himthat also include the ability to add upgraded functions, especially in the case of a technological product.

The common illustration, which is most known, is characterized by versus in stock, includes fast food or fast service restaurants. In many cases, various sandwiches, sides and other menu items are prepared in advance, wrapped and maintained in food heater until the customer plans to order. Other restaurants use the Make To Aadred concept as a marketing tool and state that their items are ready with taply that customers prefer when they make their orders. A similar situation exists with other types of companies, as adaptation can be a strong part of the brand.

In some cases, the manufacturer can also offer economic benefits to the order. The assembled goods often require more storage space than their individual pieces and parts. DelayUTIL status also reduces labor costs before payment. In addition, a good inventory can be completed differently than the inventory of the components.

The main disadvantage of the brand to make orders is the delivery time. Products are not only waiting for the shelf, so the customer's order is delayed when the product is assembled. If many orders come to the same product at the same time or the mounting line is already involved in another order, this waiting may be significant. In some cases, the benefits of price or adaptation are sufficient to balance this inconvenience for the customer. Other customers can decide to order from a company that offers faster delivery, perhaps because of the brand's model.