When you hear the word “manufacturing”, can you name the images you get in your mind? You get reminded of large-scale equipment, machines with a vast workshop. They churn out products by the hundreds. Yes, this was the situation some years ago. This traditional method holds sway in manufacturing sectors even today. Yet, a new manufacturing model has gathered enough attention. It is also garnering benefits for various industrial sectors. This model, you could have heard it several times in the present day. It is on-demand manufacturing and has revolutionised the industrial sectors. This blog focuses on on-demand manufacturing and its benefits.
Description of On-Demand Manufacturing
This model is also known by other words such as custom manufacturing, manufacturing-on-demand and cloud manufacturing. As you can guess, this model encourages production only when there is a demand. This model is a complete opposite of the traditional manufacturing method.
The reason, in the old times, products got manufactured in thousands. Then, they have to get stored safe and secure in warehouses. As the last step, they have to get sold and then the manufacturing company can gain profits.
Factors That Promoted On-Demand Manufacturing Model
The society of today is different from two decades ago. It is fast-paced. Every part of our daily life such as food, transportation as well as housing gets provided as per the demand. So, a new model has to emerge in the manufacturing industry. You now know it as the on-demand model and the shift is quite natural.
Why Did On-Demand Manufacturing Become Popular?
The whole new set of technologies made way for this new model. 3D printing technologies & CNC machining equipment made small scale manufacturers complete on-demand projects. Compare the same with the traditional manufacturing model. The process requires the usage of several expensive machining equipment and tools.
E-Commerce has made a significant contribution to the shopping sector. Also, it is E-commerce which promoted the on-demand manufacturing concept.
Let us now focus on On-Demand manufacturing and its benefits:
1. Delivery on Time
This model ensures that the manufacturing demand gets completed in a short time. This process speeds up the supplier management replies. All this is possible, if you get registered as a buyer on custom manufacturing market places. We will discuss this point in the last round of paragraphs.
This process ensures the elimination of paperwork, and fast paces the production work. It also encourages design as well as innovation. The buyers or sourcing professionals need to remain in touch with the manufacturers. This is because the products have to get produced & delivered on time.
2. No Storage Facilities Needed
In traditional manufacturing, there may be some advantages. Example – reduction of cost because of large scale production. But not all products get sold at the same time. This aspect can work in industries for products which have a longer shelf life. But there are sectors where products have a low shelf life. Then they have to get sold at a discount price to clear the spaces off shelves.
In the on-demand manufacturing model, you do not have to hold products in warehouses. The reason, the products get manufactured and delivered to the sourcing professional immediately. This point, you can count as one of the advantages of on-demand manufacturing model.
3. Make Mother Earth Go Green and Reduce Landfill Waste
In the manufacturing industry, the traditional method can make many components go to waste. There are situations where they do not get disposed of or sold out. If they get damaged due to wear (rusted), the manufacturers do not have any option but to discard them in dumps. This in turn can change into environmentally harmful materials. In on-demand manufacturing, the production starts when there is a demand. So there are no chances of wastage. This point, you can count as one of the major advantages of on-demand manufacturing and its benefits.
4. Amass Profits
Start-ups can give orders to third party companies and gain profits. When it comes to minimum order quotation (MOQ) or a single prototype, on-demand manufacturing assumes prominence.
This model has made way for the customer and manufacturer to have interaction. The manufacturer can design a new product within a short time at a low cost. In sectors such as investment casting, manufacturers can give the approval to manufacture a single prototype. This is because future products can get produced with precision. These situations ensure on-demand manufacturing has become the order of the day.
With the rare combination of CAD/CAM, new start-ups paved the way to manufacture products with complex geometries.
6. Custom Manufacturing Marketplaces
On-demand manufacturing led to the rise of digital platforms (custom manufacturing marketplaces). Gone were the days, when a buyer or sourcing professional has to rely on contacts & referrals. They also had to search in yellow pages to find a suitable manufacturer. Let us assume, the buyer’s business is a small-time industry and wants to work on a MOQ project. He needs a manufacturing set-up which will produce the product and deliver on-time. He contacts large-scale manufacturers, but they may want to work only on large scale production. Then it will be a waste of time and money as he had sent out quotations, made the calls and more.
With custom manufacturing marketplaces, a buyer can search and hire the right manufacturing partner within a short time. This marketplace will also have every types of manufacturing service providers such as
- CNC machine service providers
- Sheet metal fabricators
- Custom parts manufacturing
- Rapid prototyping service providers
- 3D printing service provider
- Moulding service companies
- CNC milling service providers
- Plastic injection moulding service providers
- CNC turning service providers
When a buyer gets registered with his profile, he can easily wade through the thousands of profiles. Then he can hire the concerned manufacturing/machining service provider within a short time.
To know about the benefits of custom manufacturing marketplaces, please read the blog by clicking on the link.
Retail outlets of manufacturing sectors got hit by the pandemic last year. Even prior to the pandemic, they had worked on on-demand manufacturing projects in a small way. But at present, with brands fighting a tough battle over retaining their loyal customers with lesser-known companies, on-demand manufacturing has become the order of the day.