7 Things to consider while working with custom merchandise online
Different companies use different manufacturing strategies to meet customer orders. Some make goods only after orders are received, while others produce goods and deliver them to retailers where customers buy them in the store.
The order fulfilment process can be broken down into production lead time, how long the product takes to produce, and the demand lead time quoted by the customer.
Depending on the lead time ratio and product type, the Print-On-Demand eBay has several basic strategic order fulfilment product options to choose from and often combine one or more to meet market demand.
1. Build to Order (BTO)
Also known as Make to Order (MTO), the BTO strategy applies only when a confirmed order for the product. BTO is the oldest style of order fulfilment and is commonly used for highly customizable or low volume products such as automobiles and aeroplanes.
It can also be used for other highly configurable products such as bikes or computer servers. The main advantage of the BTO approach in a high product diversity environment is the ability to supply the customer with accurate product specifications, low sales discounts and low risk of stock obsolescence with finished goods inventory for eBay Print-On-Demand.
The biggest disadvantage is that manufacturers are sensitive to fluctuations in market demand, which can reduce capacity utilization in production. The most effective approach uses active demand management.
Academic researchers are still studying how to effectively use BTO and BTS without compromising operational stability and production requirements.
2. Built to stock (BTS)
This is the most widely used strategy in many industries today. It refers to products that are manufactured before the final buyer is identified based on historical demand.
The BTS strategy allows for a quick response to customer demand, but it is more expensive due to maintaining stocking levels that match eBay Drop Shipping demand.
Due to the widespread of products in the market, many manufacturers adopt a combined approach where some items have BTS and others have BTO, which enables them to meet customers’ different demands. This is commonly known as hybrid BTO.
3. Make to Stock (MTS)
MTS is the most traditional production strategy used to match the product with the customer demand forecast. Goods are manufactured and placed in inventory at a retail location.
Sales forecasts based on stock historical ordering data are used to determine how much stock should be produced — the more accurate the forecast, the more efficient the MTS strategy for custom merchandise online.
MTS can be damaged if incorrect predictions lead to excessive inventory or stockout.
Also Read: 6 Tips for transforming your business with print on demand merchandise
4. Make to Order (MTO)
This approach allows the customer to produce the product only after placing the order. This allows for more flexible customization than ordering directly at the retailer’s shelf.
As a result, it creates additional waiting time for the customer to receive the product. The MTO strategy eliminates carrying excessive inventory compared to the Make to Stock (MTS) strategy.
Dell Computers uses this strategy in the production of their computers. Custom ready-made garments, custom machinery and some fine jewellery companies also use this strategy.
5. Assemble to Order (ATO)
The ATO approach allows customers to order and somewhat faster and customized products. The original product parts or components must be manufactured but not yet assembled.
Once the order is received, the item is assembled and delivered to the customer — list of labeled products. The ATO strategy is a hybrid of Make to Stock (MTS), where products are produced entirely in advance, and Make to Order (MTO), where products are made after received orders.
ATO combines the benefits of both MTS and MTO strategies, allowing customers to get the product faster. Some fast-food restaurants use this strategy.
When a customer orders a hamburger, it is assembled from a stock selection of ingredients. Auto manufacturers also use this strategy for custom orders. The customer chooses from a variety of features available for the vehicle such as interior fabric, exterior paint, seat styling, engine type, wheel or tire options.
Once the order is placed, the manufacturing plant assembles the standard parts according to the customer’s specifications and then sends them to the vehicle.
6. Handling a new list
Fulfilment centres are equipped to process inventory and ensure that the items listed are up-to-date. It involves a lot of work — making sure the right item is sent and then removing it from the list to ensure no confusion.
There are also instances where consumers need to return or replace a product. These are all situations that any qualified fulfilment centre can adequately handle. If small businesses have many examples like this, it will be very difficult for them to focus a little more.
They no longer have to worry about completing the product, to make sure enough units are ready to ship, packaging and shipping said to be used to update the product and inventory to reflect what is happening and what is coming Is properly.
This is an excellent case for keeping a lot of things in a small plate. It will be difficult for a young company to develop when they are trying to make sure they do not compromise with the quality of their product or the quality of their service.
This is where the fulfilment centre is needed. Managing inventory and going through the processes of updating it in real-time to show whether a product is on the shelf or off (figuratively) is an essential service they provide. It puts a strain on the backs of businesses and lets them do what they can to the best of their ability.
7. Giving you access to third party experts
Fulfilment centres always come with a wealth of knowledge that can attract their customers. Many small businesses (and even large companies) dream of a day when their products will be able to reach a foreign audience. This is a sign of good things ahead. This means that people love your product and its demand is increasing.
However, shipping abroad is not as easy as picking the item in a box and sending it to the post office. This in particular depends on the items you are sending. Many factors come to light, such as international shipping laws, global tariffs and taxation, to name a few.
These are things that many small businesses aren’t equipped with, and a good number of them don’t know what to do.
Using the fulfilment centre will grow with you as a company and will be beneficial to you as you will be able to show you what you need to do to gain their knowledge and understanding in shipping.
Final thoughts
There are many benefits to outsourcing part of your business to a fulfilment centre that can fit your needs and can be developed together with your company.
Even though we recommend using the fulfilment centre, choosing the wrong one will cause your company to collapse. Make sure you list a fulfilment centre that can get everything in your company.
