What is the difference between Make to Stock and Make to Order?

What is the difference between Make to Stock and Make to Order?

When creating a Purchase Indent in ManufApp, you must select the Indent Type — either:

🏷️ Make to Stock (MTS)

Used when procuring materials to maintain inventory — not tied to any specific customer order.

When to use:

  • For regularly used raw materials (e.g., standard MS sheets)

  • To build safety stock or buffer stock

  • For general production readiness

Benefits:

  • Prevents stockouts

  • Supports forecast-based planning

  • Keeps production running smoothly


📦 Make to Order (MTO)

Used when procuring materials specifically for a Sales Order.

When to use:

  • For custom or project-based jobs

  • When raw materials vary per customer requirements

  • To link purchases directly to a job or drawing

Benefits:

  • Ensures order-specific traceability

  • Avoids excess inventory

  • Aligns procurement to actual demand




✅ Choosing the right Indent Type ensures that procurement in ManufApp is purpose-driven, whether you're stocking up or fulfilling a customer-specific job.