Make-to-Order and Make-to-Stock in Odoo 19
Introduction
In Odoo 19, businesses manage procurement and manufacturing strategies through product routes. Two important inventory strategies are Make-to-Order (MTO) and Make-to-Stock (MTS) and understanding each strategy helps organizations choose the right approach for inventory planning, procurement, and production workflows.
- Make-to-Order (MTO): Used for creating specific or customized products that aren’t stored in bulk. Manufacturers procure or manufacture these products only after confirming a Sales Order, ensuring they meet individual customer requirements.
- Make-to-Stock (MTS): In a Make-to-Stock (MTS) approach, manufacturers produce or purchase products in advance and store them in inventory to meet expected customer demand.
Choosing the correct strategy directly impacts inventory management, warehouse space utilization, delivery timelines, and overall cash flow planning.
Make-to-Order :
In the MTO model, a confirmed Sales Order directly triggers procurement or production, the system triggers replenishment even if sufficient stock is already available on hand, as it creates a dedicated procurement linked to that specific order. This strategy primarily suits customized, project-based, or high-value products that companies do not store in bulk.
Setting Up the Replenish on Order Route:
By default, Odoo archives the MTO route, so to enable it:
Go to Inventory App → Configuration → Warehouses → Select warehouse → Routes
Select Replenish on Order (MTO) and unarchive it:
Go to Product → Products → Select the product → Inventory Tab
Replenish on Order (MTO) always needs to be paired with another route like: buy / manufacture / subcontracting.
Navigate to the product page and select Bill of Materials , confirm that the BoM includes all necessary manufacturing operations and accurately assign these operations to the appropriate work centers to facilitate precise production planning and execution.
Creating a Sales Order to Trigger a Manufacturing Order:
Go to Sales App → New Quotation → Confirm
Upon confirming the Sales Order, the system automatically generates a Manufacturing Order, and within it, creates a transfer operation to move the required raw materials from Stock to the Pre-Production location, (3-step manufacturing configuration)
Click on Transfer and Validate
Complete the operations either through Shop Floor module or through the green run button and once all operations are complete, click on Produce All
After manufacturing is complete, a second transfer order is created (Post production → Stock)
Click Validate to change its status from Ready → Done
Return to the Sales Order and click on the Delivery smart button; it displays the Delivery Order created to transfer the finished product from the Stock location to the Customer
Once the delivery order is validated, the goods are transferred to the customer, marking the successful completion of the Make-to-Order (MTO) process. This confirms that the sales order specifically triggered procurement or production and fulfilled it as per the customer’s requirement.
Make-to-Stock :
In the Make-to-Stock model, businesses replenish inventory based on forecasted demand instead of confirmed sales. They replenish products based on the reordering rule set up in the product page :
Product → More → Reordering Rules
Configure a Reordering Rule by defining minimum and maximum stock levels, so that the system automatically triggers replenishment whenever the on-hand quantity falls below the specified minimum threshold.
Set the route as manufacture or buy either in the reordering rule itself, or on the inventory tab of the product page:
When you set the product route to Buy, it automatically generates Purchase Orders during replenishment. If you set it to Manufacture, it triggers the automatic creation of Manufacturing Orders upon replenishment.
For example, the on-hand quantity of the product Table Lamp is 10. When you create a Sales Order for 8 units, the available stock reduces to 2, which is below the defined minimum level of 5.
This triggers the reordering rule, and since the route specifies Manufacture, the system automatically creates a Manufacturing Order for 18 units to replenish the stock to the maximum level of 20.
In conclusion, proper configuration between Make-to-Stock and Make-to-Order in Odoo ensures accurate procurement planning, optimal stock control, and efficient order fulfillment.
Functional Differences between Make-To-Order and Make-To-Stock
| Feature | Make-to-Stock (MTS) | Make-to-Order (MTO) |
| Trigger Mechanism | Reordering rule based on Min/Max stock levels | Sales Order confirmation |
| Stock Usage & Replenishment Logic | Uses available stock first and replenishes inventory up to the defined Maximum level | Ignores available stock and creates procurement exactly matching the Sales Order quantity |
| Sales Order Linkage | No direct link between the Sales Order and the resulting PO/MO. | Direct linkage and full traceability between the Sales Order and the PO/MO. |
| Financial Impact | Higher risk of overstock or dead stock; capital is blocked in inventory. | Minimal inventory risk; procurement is aligned with confirmed revenue. |
| Best Used For | Fast-moving, high-volume standard items. | Customised, high-value, or project-based products |
Get answers to common questions about Make-to-Order (MTO) and Make-to-Stock (MTS) in Odoo 19, covering how each method works and when to use them effectively
Make-to-Stock replenishes inventory based on reordering rules, whereas Make-to-Order triggers procurement or manufacturing only after confirming a Sales Order.
Yes. When you enable the MTO route in Odoo, the system triggers replenishment even if stock is available as it creates order-specific procurement.
Make-to-Stock is ideal for standard, fast-moving products where maintaining inventory ensures faster customer delivery.
Looking to implement or optimize Make-to-Order and Make-to-Stock in Odoo 19 for your business? Connect with the experts at Infintor for a customized consultation.
