How do I set up make-to-order in Odoo?

Enable Multi-Step Routes in Inventory settings. On MTO products, add both Manufacturing and Replenish on Order (MTO) routes in the Inventory tab. Create a bill of materials. When a sales order is confirmed, Odoo automatically creates a manufacturing order.

What is the difference between MTO and MTS in Odoo?

Make-to-Stock (MTS) produces to forecast and fulfills from inventory. Make-to-Order (MTO) produces only when a customer order is received. MTS offers faster delivery but risks unsold stock. MTO eliminates inventory risk but has longer lead times.

Can I use both MTO and MTS for different products?

Yes. Routes are configured per product. Standard items with predictable demand use MTS routes, while custom or slow-moving products use MTO routes. Each product follows its own replenishment logic.

How does Odoo handle component procurement for MTO?

When an MTO manufacturing order is created, Odoo checks component availability. Missing components trigger automatic purchase orders to vendors or sub-assembly manufacturing orders, based on each component's configured routes.

Odoo Make-to-Order Manufacturing: MTO Setup (2026)

What Is Make-to-Order?

Make-to-order (MTO) is a manufacturing strategy where production begins only after a customer order is received. Unlike make-to-stock (MTS) where you produce to forecast and sell from inventory, MTO eliminates the risk of unsold finished goods and reduces warehousing costs. Odoo supports MTO natively through its routing system, triggering manufacturing orders automatically when sales orders are confirmed.

When to Use MTO

MTO is the right strategy for custom or configured products that cannot be pre-built, expensive products where holding finished goods ties up capital, products with long shelf life concerns, low-volume high-mix production environments, and products with too many variants to stock all combinations. Common MTO industries include custom furniture, industrial equipment, specialized electronics, and configured software systems.

Odoo MTO Configuration

Route Setup

The MTO route is built into Odoo but may need activation. Go to Inventory → Settings and enable Multi-Step Routes. The Replenish on Order (MTO) route tells Odoo to create a replenishment action (manufacturing order or purchase order) whenever a sales order is confirmed for the product, instead of fulfilling from existing stock.

Product Configuration

On each MTO product, go to the Inventory tab and add both the Manufacturing route and the Replenish on Order (MTO) route. The Manufacturing route tells Odoo to make the product, while MTO tells it to make it only when ordered. Without MTO, the Manufacturing route only triggers when stock falls below reorder point levels.

Bill of Materials

Every MTO product needs a bill of materials defining its components and operations. For configurable products, use configurable BOMs that adapt based on product attributes (size, color, material). When the sales order specifies a product variant, Odoo selects the correct BOM and creates a manufacturing order with the right components.

The MTO Flow

Step	Trigger	Odoo Action
1	Customer places order	Sales Order created
2	SO confirmed	Manufacturing Order created automatically
3	MO checks components	Purchase Orders for missing components
4	Components arrive	MO becomes ready to produce
5	Production completed	Finished goods available
6	Delivery validated	Customer receives product

Component Procurement

MTO triggers a cascade through the BOM. If components are in stock, they are reserved for the manufacturing order. If components are not available, Odoo triggers replenishment — either a purchase order to the vendor or a sub-assembly manufacturing order, depending on the component's own routes. This cascading MRP logic ensures all materials are procured for the specific customer order.

Lead Time Management

MTO lead times are critical because the customer is waiting. Total lead time includes vendor lead time for components, manufacturing lead time for production, and delivery lead time for shipping. Odoo calculates the expected delivery date by summing these lead times from the order confirmation date. Display the expected date on the sales order so salespeople can commit realistic delivery dates to customers.

MTO vs MTS Hybrid

Many manufacturers use both strategies. Standard products with predictable demand are made to stock. Custom products or slow-moving variants are made to order. Odoo handles this at the product level — each product has its own routes. Some products may use MTS by default but switch to MTO when all stock is committed. This hybrid approach balances inventory investment with customer responsiveness.

Common Challenges

Long lead times — MTO inherently has longer delivery times than shipping from stock. Mitigate by stocking common components and pre-building sub-assemblies.
Capacity planning — Incoming orders must be scheduled against available production capacity. Use Odoo's manufacturing planning to avoid overbooking work centers.
Order changes — Customer changes after MO creation require careful handling. Custom components may not be reusable for other orders.
Minimum order quantities — Vendor MOQs can be problematic for MTO if the customer order does not meet the MOQ. Negotiate or stock common components.

DeployMonkey + MTO

Deploy Odoo Manufacturing on DeployMonkey and configure make-to-order production with AI assistance. From BOM setup to lead time calculation, start producing on demand from day one.

Odoo Make-to-Order Manufacturing: MTO Production Setup