Configure-to-Order (CTO)

Configure-to-Order (CTO) is a manufacturing approach where products are built based on specific customer preferences. Instead of producing a standard product and hoping customers like it, companies create a customizable base and add features or options based on individual orders. This allows for a tailored product that meets unique needs while still benefiting from efficient manufacturing processes. For example, a company might produce a computer with various choices for memory, storage, and graphics, and assemble it only after a customer places an order. CTO balances customization with streamlined production, reducing waste and inventory costs.