Make to order and make to stock may seem similar but are different processes. Make to stock is triggered by a need to increase inventory and make to order is triggered by a need to fulfill customer order. Make to order business model was made popular by Dell computers.
Replacing inventory with information such as accurate forecasting helps in having an agile supply, which is at the same time flexible enough to adapt to any changes in the supply and demand. Having excess levels of inventory increases storage costs.
Dell Computers pioneered the Internet-based direct sales model for its personal computers which was highly successful in the 90’s and early 2000. Dell stood out from other computer makers which followed the make to stock model. The just in time strategy (JIT) of Dell made it possible to operate with lowest levels of inventory. The make to order model further reduced costs by removing middlemen such as retailers and wholesale distributors. The internet based direct sales model also generated a huge amounts of market data which Dell used effectively to forecast sales. This ensured Dell to be a market leader for a very long time.
However, in recent years Dell sales have dropped and Dell is trying to reinvent its supply chain by focusing on what it calls segmented supply chain, that is offering different solutions based on customer needs.
http://www.manufacturingnews.com/news/98/0703/art1.html
http://www.industryweek.com/blog/dell-reinvents-its-supply-chain