A) Assemble- to- order is a manufacturing strategy in which the manufacturer stocks up on sub-

assembly parts and various other components and finally assembles the parts into a
final/finished product after a customer places an order. The ability of a company to use the
assemble-to-order strategy depends upon how fast it can assemble and deliver the goods to
its consumers.

The assemble-to-order strategy is essentially a combination of make-to-order and make-to-stock

production strategies.

Make-to-Order (MTO) is a business production strategy that allows customers to purchase products
that are customised to their specifications and therefore, the manufacturing of the item begins only
after a customer order is received.

Make-to-Stock (MTS), on the other hand, is a manufacturing process in which the production of
goods takes place by matching the production target with the anticipated forecast or customer
demand.

Difference between MTO and MTS:

Make-to-Order (MTO): Make-to-order pertains to the process of having orders generated

through actual consumer demand and then producing that order for the individual customer
that ordered it. ... Make-to-Stock (MTS): Make-to-stock involves producing or
manufacturing goods based on anticipated consumer demand.

Objective :- The aim is to minimize not only inventory costs from ordering too many components but
also product shortages that result in a failure to fulfill customer demand for all products. This lets
companies fulfill large orders relatively quickly with minimal unsold inventory, yet still allows
customers to partially customize orders.

EXAMPLES OF COMPANIES THAT USE ASSEMBLE-TO-ORDER STRATEGY

From burgers to smoothies to cars to computers: many businesses use this strategy
1) Consider a smoothie manufacturing company which sells customizable smoothies. Because
the smoothies can have a fluctuating demand, so, what the company here will do is it will
adopt this assemble-to-order strategy in which it will stock up all the ingredients required to
make the smoothies but will manufacture them (the final product) only after a customer
order is received. Companies such as Body-Energy Club and Booster Juice Canada follow
such a model.

2) Dell Computers follows an assemble-to-order business model for personal computers and
laptops, whereby they allow customers to choose from a range of options for each part of
the PC, including CPUs, monitors, processors, and other software and hardware. Once the
customer places the order, the PC is assembled and shipped for delivery.
3) Automobile companies like BMW has also employed the use of assemble-to-order strategy
by keeping the common parts or components in the factory floor in adequacy in such a
manner that whenever an order comes, they can ensure quick assembling of the parts into
the finished product and at the same time, don’t build whole units in advance to avoid any
unsold product.

 Link :- https://review.chicagobooth.edu/strategy/2020/article/ever-closer-optimally-cost-efficient-
assembly-line-operation
Difficulty/Downside of this strategy :- The difficulty of estimating how much stocks to keep of each
components in the shop floor gives a little challenge to the companies on using the ATO strategy.

B) Automatic Identification & Data Capture (AIDC) Technology –

This is a type of technology in which data about a particular object is automatically collected
and stored in a computer without any human involvement. Some prominent examples
include QR code, Bar code, RFID, biometrics, voice recognition etc. Tools like AIDC are used
for asset and inventory management, security and workflow management.
AIDC is also commonly known as Auto-ID and Automatic Data Capture.

Key market players which manufacture and sell this technology to other companies are
Honeywell (US), Toshiba, Epson, BlueBird, Zebra etc.

EXAMPLES OF AREAS AND/OR COMPANIES WHICH HAVE EMPLOYED THE USE OF AIDC
TECHNOLOGY :-

1) Increased awareness is being spread regarding the adoption of technology to secure

financial transactions. For instance, financial institutions are deploying
solutions, such as biometrics and smart cards, to provide additional
protection to financial transactions.

2) This tool has also seen its use in the healthcare sector for improved visibility of
information, accurate capturing of data and enhancing overall operational efficiency.

3) RFID system which involves the use of scanners and tags has been deployed in verticals
like government, sports, logistics, manufacturing, retail and education.