If talking about build-to-order could make it happen, many companies would already be building truckloads of custom cars. Indeed, many manufacturers have affirmed strategies to reduce costly finished inventory by shortening order-to-delivery time and building vehicles to customer order. ^[1.] Something has obviously happened to dampen their enthusiasm. The variety of attempts and the scattered strategies reflect a rather half-hearted attitude, and the results often are more accidental than planned. Even at those manufacturers that are the furthest along, build-to-order strategies are not consistent across brands and models, and even vary within model production cycles. Companies tend to reserve build-to-order for luxury models and to use forecast-based production for most other products. Furthermore, build-to-order percentages are much higher at the start of a model s cycle than at the end.

Why haven t companies made the transition? Part of the problem is that no one seems clearly motivated. In the larger scheme of sales sourcing determining how the customer s order is actually fulfilled build-to-order is only one possibility, and owing to current long...