On-Demand Manufacturing

On-Demand Manufacturing vs. Traditional Manufacturing

Traditional manufacturing is built on the principle of economies of scale, where parts can only be produced cost-effectively if manufactured in large quantities. As a result, businesses are often forced to place high-volume orders to receive any sort of competitive pricing. This requires companies to not only have space to store high levels of inventory but to also make accurate projections on consumer demand. Over Predicting demand can have an adverse effect on profit margin when factoring in the cost of discounting or disposing of surplus inventory.

On-Demand Manufacturing allows companies to have the flexibility to order exactly what they need when they need it. They are able to request small quantity orders without increasing cost due to the rise in 3D printing, CNC machining, and similar technologies. These technologies can create different parts and variations to parts quickly without having to adjust or retool the machine, which allows small orders to be just as economical as mass production. This is a major limitation to traditional manufacturing methods that use machines designed to create a large volume of a fixed part. Also, With small batch orders, companies can maintain the same production volume without needing to store surplus stock, reducing warehousing costs.

Advantages of On-Demand Manufacturing

Fast Turnaround
With the ability to provide instant quotes on CAD models, On-Demand Manufacturers are able to receive an order and begin production same-day. It will often take traditional manufacturers several days or weeks to get a quote approved. And because products are received upfront in high volumes, it may take months before products are received.

Cost-Effective
Fast turnaround times and small-batch orders allow businesses to cut costs on warehouse storage and logistics due to having minimal inventory on hand. This in turn also reduces costs associated with excess stock disposal and waste.

Prototyping
One major advantage of On-Demand Manufacturing is the ability for rapid prototyping. Single parts can be manufactured and shipped fast and cost-effectively. Variations of the same part can be printed easily because the technologies used do not require retooling. Rapid prototyping allows companies to bring ideas to market quickly to meet the ever-changing demands of customers.

More control of goods and less waste
In conventional production, the number of goods produced is defined by estimation of customer requirement. This estimation is vulnerable to oversights, making the likelihood of stock exceeding demand. Goods kept in storage are also prone to damage, temporary drops in demand, and unexpected situations. The chance of supply exceeding demand in the manufacturing on-demand model, as quantity is only ever made on need. On-demand manufacturing also keeps a lot of resources that would have gone into making manufactured goods that may result in product not being used.

Improves innovation
The normal interaction between client and manufacturer, reduced lead times, low cost, and flexibility that are typical of custom production have greatly increased the rate of technical innovations. Engineers and creators can design products and have a prototype produced in days at minimal expense.

On-Demand Manufacturing Processes