Friday, 21 December 2018

Response strategies - Towards consumer demand

Response strategies

In meeting consumer demand, companies are engaged in Manufacturing typically implement a production response strategy. So basically, the response strategies of production against the consumer demand is a Response or a response of a company manufacturing in the realization of consumer demand in accordance with the time and the amount needed.

In General, response strategies towards consumer demand Production consists of 5 types, i.e. Design to Order (DTO), Assemble to Order (ATO), Make to Order (MTO), Make to Order (MTO) and Make to Demand (MTD)

Design to Order (DTO)

Is the Design to Order (DTO) or often called with Engineering to Order (ETO) is the response strategies the fulfillment of consumer demand the start of the process of designing a product according to specifications required by consumers/customers to produced and delivered into the hands of consumers/customers. Manufacturing Companies in question so recently will perform process design (design) and do the production process when there is a definite demand from consumers/customers. One of the advantages of this strategy is the company does not have inventories (inventory) so the cost of inventories may be said to be almost "no".

Strategy Design to Order (DTO) or Engineering to Order (ETO) is suitable for Manufacturing companies that produce products that are new or unique product. Examples include bridges, military products, ships, aircraft, special equipment and Building industry.

Assemble to Order (ATO)

On the strategy of Assembly to Order (ATO), manufacturing companies will make the standard modules or sub-assembly that standard so that it can respond quickly to every consumer demand/customers. When Consumers or customers booking, the company will assemble the module or sub-Assembly according with the demand require by the customer/consumer. So essentially, modules or sub-assembly such standards have been produce before the consumers/customers confirm their order placement.

Wrong example Assembly Strategy to Order (ATO) is on computer products. the company will make the standard modules such as the module of RAM, hard drive, Motherboard, processor and DVD Drive. Once receive the order confirmation from Consumer direct. The company doing the Assembly of all the modules in question being 1 unit fully equip computer.

The company implement the strategy of Assembly to Order (ATO). It has risk in storing inventory (inventory) of standard modules in question. However, the risk can be minimize by accurate forecasting system.

Make to Order (MTO)

On the strategy of Make to Order (MTO). The company will only implement the production process when receiving the order confirmation from the consumer/customer for a particular product. The customer or the Customer is usually willing. To wait for the manufacturer (manufacturing company) to complete the production. Different by Design to Order (MTO), Make to Order (MTO) is not start from the process of drafting or Design. Because the products demand by Consumers/customers are basically already been produce. Before or the design were prepare in advance.

 Make to Stock (MTS)

Make to Stock is a strategy in which manufacturers have complete the production process. The products they have the shape of finish goods before receiving orders from consumers/customers. Finish goods ready-ready to be sent to the customer. The customer is so accept orders from customers by manufacturing companies are concern.

The strategy of Make to Stock (MTS) have a high risk of having inventories (inventory). That much so costs relating to supplies also become high. But the advantage is it can quickly respond to consumer demand. So that consumers or customers do not need to wait for a long time to get its products.

The strategy of Make to Stock (MTS) is often use by the manufacturing company. That makes consumer goods such as household appliances, staple ingredients, food products and toys for children. In General, these companies have an accurate forecasting system in reducing the risks facing it.

Make to Demand (MTD)

Make to Demand (MTD) is a relatively new Response Strategy. A strategy was develop to meet the demand of consumers/customers with a faster and more flexible. On the strategy of Make to this Demand, companies can submit the require number of customers/Consumers. At the right time in accordance with the request of the customer/consumer. This strategy is essentially a combination of several strategies mention above.

Design (design), raw materials, module or sub-assembly or finish product can be save as inventory (inventory). But the challenges to Make to this is how to take into account the Demand and increase efficiency and effectiveness in an Inventory (inventory).

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