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MTS / MTO classification should be dynamic.
Most companies classify their products as either Make-to-Stock (MTS) or Make-to-Order (MTO). Regular running products with frequent orders and low customer tolerance time are classified as MTS, where the focus is on improving product availability and freshness. On the other hand, certain products with infrequent demand and relatively higher customer tolerance time are managed as MTO, where the focus is on reducing the total supply lead time.
Very few companies revisit this classification often. While MTS and MTO both benefit from supply flexibility and responsiveness, only a few companies leverage these capabilities for a much bigger competitive advantage. As the company improves its responsiveness capability, it can disrupt the market by switching between MTS and MTO by nudging its customers to modify their tolerance time.
There are several examples of such a disruption across various sectors. The competitive advantage gained by such a move usually lasts much longer, as competitors find it difficult to copy.