On-Demand manufacturing

On-demand manufacturing — or on-demand production, manufacturing on-demand or production on-demand — is as straightforward as it sounds. Parts or finished products are made as and when needed and in the exact quantities required.

This is the opposite of traditional manufacturing, where goods are mainly produced in large volumes and stored as inventory in a warehouse until sold, which may take weeks or months. 

The move from traditional to on-demand manufacturing may appear minor but it represents a transformation in the way goods are designed, ordered, made and shipped. It also radically changes the way manufacturers and their suppliers and customers interact with each other.

On-demand manufacturing works like any on-demand service. Users log on to a web or mobile app, upload their design specifications or CAD (computer-aided design) models and receive instant quotes from a global ecosystem of qualified manufacturing partners.

These manufacturers will guide you through the whole process from initial design to final delivery, including advice on which materials and production methods are best suited for your needs. Some on-demand manufacturing platforms even offer auto-generated design-for-manufacturing feedback to further optimize your model and ensure the best results.

After approving your chosen quote, manufacturing begins and each stage of the process can be tracked in real-time via the digital platform.

The system uses the flexibility of online services and cloud technology to provide users with complete live control of projects. Changing details such as delivery dates and location and sharing project information with colleagues can be done at the touch of a button, and pricing is both transparent and visible.

A user-friendly platform ensures the manufacturer and client remain in constant contact during every phase of production. And thanks to the power of cloud computing, all information and communication are stored and easily accessible anywhere, anytime.

When you think of manufacturing, you probably imagine big factories filled with high-tech machines cranking out a continuous stream of products. This is the traditional approach, one built around assembly lines and making things as efficiently as possible.

Processes have become more advanced, but the assembly line of today isn’t so different from the one introduced by Henry Ford more than 100 years ago to mass-produce cars.

Mass production lies at the heart of traditional manufacturing. Large-scale factories filled with machines and workers require a lot of space and are expensive to set-up and operate.

In order to be cost-effective, these factories create high numbers of mostly similar goods. When production volumes go up, the cost per unit comes down. This is because costs are spread over more individual parts — known as ‘economies of scale’.

The traditional manufacturing model has done much to help improve productivity, consistency, quality control and worker safety. Yet, it also has shortcomings, including high minimum order requirements, little to no customization, long lead times (how long it takes between ordering something and it being delivered), and the cost of having to store excess inventory. 

One big drawback issue with traditional manufacturing is having to accurately predict what customers will want and need months in advance.

Ordering and making too little creates a supply shortage and customers may opt to go elsewhere. Make too much and unsold stock must be stored, sold at a discount or disposed of. All of which costs money.

The difficult task of demand forecasting has become more challenging in line with changing consumer needs and habits. This is just one example of how the limitations of traditional manufacturing are beginning to outweigh its benefits.

Customers have grown to expect products and experiences tailored to their specific desires, and they don’t want to wait weeks for delivery. Faced with an urgent need to become more agile, flexible and responsive, companies are turning to on-demand manufacturing.