Build to Order (BTO)

Definition - What does Build to Order (BTO) mean?

A build to order (BTO) product is custom-made for a specific customer according to what the customer requests. BTO products usually exceed standard specifications and are designed to meet the design requirements of an individual, organization or business.

This production approach is based on building the customized product once the customer’s order is received. BTO production is typically found in highly configured products such as computer servers and automobiles. BTO products are also found in industries that have expensive inventory such as aircraft supplies.

Techopedia explains Build to Order (BTO)

The BTO production approach is most economical for a manufacturer that produces high-value, low-volume items. It would not be very cost-effective for a manufacturer that produces low-value, high-volume items.

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