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MTO Inventory Hybrid Model: Maximizing Wholesale Partner Benefits

Индустриальный парк "Цветочный горшок

Introduction: The Wholesale Dilemma We've Solved

Every wholesale buyer faces the same fundamental question: Do I order from existing inventory for immediate delivery, or wait for custom production that better matches my market needs?

For decades, ceramic manufacturers forced wholesalers to choose between:

  • Option A: Quick-ship stock items (often generic designs)

  • Option B: Long-lead customized items (with higher minimums)

At TX Ceramics, we’ve spent 25+ years evolving our manufacturing capabilities to eliminate this false choice. Our journey from small family workshops to a fully automated, digitally-driven smart factory has enabled us to create a third option: The Hybrid Production Model.

This isn’t just theory—it’s the practical result of our continuous investment in technology and processes, culminating in our Global Flowerpot Smart Manufacturing Industrial Park currently under development.

Ceramic flower pot factory

Part 1: Understanding the Three Production Models

Traditional Approaches & Their Limitations:

1. Pure Stock Model (The “Warehouse” Approach)

  • How it works: Factory produces large quantities of standard items, holds inventory

  • Wholesaler benefit: Immediate shipment (15 day delivery)

  • Wholesaler drawback: Limited selection, risk of unsold inventory, no customization

  • Our past: This was our 2008-2016 approach as we built our B2C sales system

2. Pure MTO Model (The “Custom Shop” Approach)

  • How it works: Everything made after order confirmation

  • Wholesaler benefit: Full customization, no inventory risk for factory

  • Wholesaler drawback: Long lead times (60-90 days), higher minimums

  • Industry standard: What most ceramic factories still offer today

3. Our Hybrid Model (The “Smart Manufacturing” Approach)

  • How it works: Strategic stock of bestsellers + Rapid-response MTO capacity

  • Your benefit: Fast shipment of core items + customization where it matters

  • Our capability: Enabled by our 2017 automated line and 2019 digital platform

  • Visual proof: Please visit our homepage or come to our factory to witness firsthand our flexible production practices.

Ceramic flower pot factory

Part 2: How Our Manufacturing Evolution Enables This Model

The Technology Foundation:

Phase 1: The Manual Era (1997-2016)

  • Family workshop beginnings

  • Established Huiyuan Corporation (twice, in 1999 and 2012)

  • B2C system development

  • Limitation: Production changes took days/weeks

Phase 2: Automation & Digitalization (2017-2021)

  • 2017: Complete fully automated production line

  • 2019: Digital factory platform built

  • 2020: 3D industrial manufacturing base

  • Breakthrough: Quick changeovers between products

Phase 3: Smart Manufacturing (2022-Future)

  • 2022: Global Flowerpot Smart Manufacturing Industrial Park foundation

  • Current: Real-time production monitoring

  • Future: Predictive inventory algorithms

  • Capability: Simultaneous management of stock and custom production

Ceramic flower pot factory

What This Means for Your Orders:

 
 
Order TypeTraditional FactoryOur Smart Factory
Standard itemMay be out of stockGuaranteed from strategic inventory
Color variationNew production run (60 days)Modified in production flow (20 days)
Size adjustmentNew molds needed (90+ days)CAD adjustment to existing molds (30 days)
Logo additionComplex processDigital integration into glaze process

Part 3: The Hybrid Model in Practice

How We Determine What Goes into Strategic Stock:

Data-Driven Decision Making:

  1. Historical Sales Analysis: Our top 20% of SKUs generate 80% of volume

  2. Social Media Tracking: What’s trending on Instagram

  3. Seasonal Patterns: Regional demand variations by quarter

  4. Wholesaler Input: Partner forecasts and requests

Current Strategic Stock Categories (Examples):

  • 6-inch Ribbed Terracotta: Always 5,0000+ units available

  • 8-inch Matte White Cylinder: 3,0000+ units across regions

  • 4-inch Mini Succulent Pots: 10,0000+ units for quick replenishment

  • See our current stock levels: Available to partners in our digital portal

Tongxin Factory Showroom

The MTO Accelerator Program:

For items not in strategic stock, we offer three MTO tiers:

Tier 1: Quick-Modify (15-25 days)

  • Modify existing designs (color, slight size adjustment)

  • Minimum: 500 units

  • Example: Change our standard cream to your specific beige

Tier 2: Rapid-Develop (30-45 days)

  • New designs using existing mold systems

  • Minimum: 1,000 units

  • Example: Add your logo to our best-selling shapes

Tier 3: Full-Custom (60-75 days)

  • Completely new designs

  • Minimum: 3,000 units

  • Example: Exclusive shape for your chain stores

Part 4: Wholesale Partner Benefits & Case Studies

Benefit 1: Reduced Cash Flow Pressure

Traditional scenario:
You order 5,000 custom units, pay 50% deposit, wait 60 days, receive all at once, then gradually sell over 6 months.

Our hybrid scenario:

  • Order 1,000 units from stock (ship in 10 days)

  • Order 4,000 custom units (ship in 45 days)

Benefit 2: Market Testing Without Major Risk

Case Study: European Home Decor Chain

  • Challenge: Uncertain about new color palette for spring collection

  • Our solution:

    1. Ordered 300 units each of 3 colors from our MTO accelerator program

    2. Tested in 15 stores for 30 days

    3. Winning color re-ordered as 5,000 units (stock + accelerated MTO)

    4. Losing colors discontinued with minimal loss

  • Outcome: 37% higher sell-through than previous season

Benefit 3: Balancing Consistency & Novelty

For Garden Centers:

  • Stock items: Core sizes/colors that always sell (predictable revenue)

  • MTO items: Seasonal colors, local team logos, exclusive designs (premium margin)

For Online Retailers:

  • Stock items: Fast shipping for Amazon/eBay requirements

  • MTO items: Exclusive designs for your website/DTC channel

Benefit 4: Disaster Recovery

Real Example: 2023 Supply Chain Disruption
When a competitor’s factory had a fire, their wholesale partners faced 6-month delays. Our hybrid model allowed us to:

  1. Supply immediate needs from strategic stock

  2. Accelerate MTO production for their custom items

  3. Transition three new wholesale partners within 60 days

  4. Result: We gained long-term partners who value resilience

Рулонная распалубка

Part 5: How to Optimize Your Orders with Our System

Step-by-Step Planning Guide:

For New Partners:

  1. Start with stock items for your first 2-3 orders

  2. Analyze sales data to identify your best performers

  3. Gradually introduce MTO elements (colors first, then designs)

  4. Provide 6-month forecasts to help us optimize our strategic stock

For Established Partners:

  1. Quarterly planning meetings with your account manager

  2. 80/20 analysis: Which 20% of SKUs give you 80% of revenue?

  3. Seasonal planning: Share your promotional calendar 90 days ahead

  4. Continuous feedback: What sold faster/slower than expected?

Digital Tools We Provide:

Partner Portal Features:

  • Real-time stock level visibility

  • MTO production tracking

  • Forecast submission system

  • Performance analytics dashboard

  • Access: Available to all partners with 5,000+ annual units

Полностью автоматическое оборудование

Part 6: Looking Ahead – The Future of Smart Manufacturing

Our 2024-2025 Roadmap:

Q3 2024: Enhanced Forecasting Algorithm

  • AI-driven prediction of your regional demand

  • Automatic stock adjustments based on your sales patterns

  • Benefit: Reduced stockouts of your key items

Q4 2024: Regional Stock Hubs

  • Strategic inventory placed closer to key markets

  • Benefit: 7-day delivery to major regions vs. current 30-day

2025: Complete Smart Park Integration

  • Global Flowerpot Smart Manufacturing Industrial Park fully operational

  • Capability: Real-time production switching between stock and custom

  • Target: 15-day standard delivery for any item, any customization

The Long-Term Vision:

As we work toward becoming the leading brand in the global flower pot industry, our hybrid model will evolve into a fully responsive manufacturing ecosystem where:

  • Your sales data directly influences our production planning

  • Regional trends trigger automatic design adjustments

  • Sustainability is built into every aspect of production

  • Every wholesale partner has a customized production relationship

Conclusion: Partnership as Production Strategy

The journey from our 1997 family workshop to today’s smart manufacturing capability has taught us one fundamental lesson: The best production model serves the customer’s business model.

Our hybrid approach isn’t about maximizing our factory efficiency—it’s about optimizing your inventory turns, your cash flow, and your market responsiveness. By leveraging 25+ years of manufacturing evolution, we’ve built a system that gives you the best of both worlds: the speed of stock and the specificity of custom.

This is more than a production method; it’s a partnership philosophy—one that recognizes your success as integral to our own growth as we build toward global leadership in the flower pot industry.

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