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. It is usually beyond standard specifications and intended to meet certain 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. They are also found in industries that have expensive inventory such as aircraft supplies.

Techopedia explains Build to Order (BTO)

Build to order (BTO) is a production approach based on a confirmed customized order from a specific individual, organization or business. A finished item is generally a combination of standard parts and tailor designed components.

In general, a BTO product is by demand and built once the order is received. The BTO production approach would be most economical for a manufacturer who yields high value and low volume parts. It would not be very cost-effective for a manufacturer who produces low value and high volume parts.

Examples of a BTO product marketing advertisement would be:

  • “Designed and built specifically to suit your needs and wants. Every system is unique to the person who orders it and usually takes a few business days to assemble and test”
  • “Use custom compact gaming PC build configurator to upgrade or downgrade components to fit specifications into your budget and requirements”

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