World Class “To Order” Strategy Proves Key to Manufacturing Profitability

February 10, 2005 (Press Release) -- Manufacturers today face market conditions that are having a fundamental impact on profitability. Manufacturers must find new ways to improve the factors that affect their profits-namely sales volume, price, direct product costs and overhead. Keeping selling prices at optimal levels requires differentiation as opposed to commoditization. Maintaining or growing sales volume requires strong customer service and rapid response to customer needs. Keeping costs low requires reducing product costs and as well as keeping overhead expenses to a minimum.
According to Thomas R. Cutler, spokesperson for the ETO Institute (www.etoinstitute.org), “The answer to the profitability crunch may be a world class "To Order" strategy. Products produced to meet specific customer needs can command higher prices and provide sales differentiation. Unfortunately, an ineffective "To Order" program can drive complexity that increases costs and extends quotation and manufacturing lead-times-offsetting the positive impact on profitability.”
Roger Meloy, of the leading ETO ERP manufacturer, Encompix (www.encompix.com), “Whether a company chooses Engineer to Order (ETO), Make to Order (MTO), Assemble to Order (ATO) or another similar approach, an effective "To Order" strategy is essential. Automation is beginning to play a large role in allowing companies to achieve "To Order" advantages without paying the penalty of high costs and long lead-times. “

Roger Meloy
Encompix
www.encompix.com
513.733.0066
Rmeloy@encompix.com