The phrase “In the past, it was common practice that only goods held in stock could be sold to customers. However, goods are now being sold that have not even been produced. This is called contract manufacturing or production to order.” describes the shift from traditional stock-based production to what is known as contract manufacturing or production to order. In earlier times, companies sold only goods that were already manufactured and stored in warehouses. Today, products – such as cars – are often produced only after a customer places an order. This reflects a demand-driven production model closely linked to just-in-time logistics and a strong focus on individual customer requirements.
