M-T-O Screens
M-T-O Screens
Strategy 1
The Make-to–order is a strategy that will lead to waste and cost minimization. The current increasing cost pressures facing much supply chain companies calls for the need of the managers to ensure that they embrace an efficient and lean supply chain. In so doing, they have to ensure that they are using a minimal inventory. The embracing of the MTO strategy will at the same time lead to increasing competitive pressures and the provision of customer centered services. Customer service will mainly be achieved through delivering make-to stock (MTO) and make-to stock (MTS) products.
The MTO is a model on supply through which customers arrive at the chain stores and place their orders. Whenever an order is, the stores need to quote the customer’s due date. The successful fulfillment of time allows manufacturers to reduce stock by making proper schedule of the production. In order to cater for other arriving orders, through the use of the make-to-order, the manufacture will also manage to reduce cyclical inventory costs because he will be able to convert some products.
Through the adoption of the MTO model, it will be possible for Starbucks to compete effectively, whenever they take the appropriate action and makes sound decisions. The company has to ensure that all the data is available needed for it will allow them to make the key decisions concern ways of chasing new customers and businesses, estimating the price, utility of capacity without missing the said dates of customers, and on the best approaches in handling technological and market changes.
The main benefit of adopting a make-to-order is automating the routine activities and makes people to focus on activities that add value to the organization that the payers will be the customers. Being well informed on the production process means that there is less stress upon the employees and accurate information. The system will act as a reminder on the needed activities to be done so as to fulfill the customers demand.
Strategy 2
The merging with Krispy Kreme will call for the need to have a centralized operation point to cater for both Starbucks and KK. The manufacturers and suppliers for both companies will require a single entity that will, control both entities. The controller of these two companies will first have to make decisions concerning the scheduling of the due date and facilities setting to suit the customers needed. The production planning focus is based on performance measures and order execution such as average order delays and average time for response. It is vital to recognize the difference in managerial actions rather than those expected in MTS strategy and MTO strategy in a combined production of MTO-MTS.
This is because of the different contexts of strategy in which the Products are produced. In the merger, therefore, a mixture of both the MTS and the MTO products are necessary. The interaction of these two companies provides a shared capacity as well, as other new possibilities for solving problems within the production. Furthermore, the products from one compensate will help in boosting the demand for another company at times when there is a low demand for the MTO products. The combination of MTO-MTS production is in the food processing industries because it helps in the managerial decision making processes (Carr, S& Duenyas, 2000, p, 709-720).
Reference
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