Procure To Order Definition

In business, procure to order (PTO) is a type of manufacturing process in which materials or components are not purchased or obtained until there is a customer order or forecast demand for the specific finished product.

This contrasts with make to stock (MTS), where products are manufactured or assembled in advance and kept in inventory until there is a customer order, and with make to engineer (MTE), where products are only manufactured after receiving engineering drawings from the customer.

PTO can be used in different types of manufacturing businesses, including those that produce custom-made products, as well as companies that make standardized products. It can also be used in different types of businesses, such as service businesses.