What is On-Demand Manufacturing, and what are the benefits?
What is On-Demand Manufacturing, and what are the benefits?
Explore on-demand manufacturing's definition, benefits, and applications. Learn how this just-in-time approach reduces costs, minimizes inventory, improves quality, and accelerates time-to-market for businesses of all sizes.
On-demand manufacturing (LINK TO MARKETPLACE OF CAD ROOMS TBC) is revolutionizing the way companies manufacture parts and products. It refers to the possibility of producing goods on an as-needed basis, opening the opportunity for companies to manufacture by responding to specific customer orders, market demands, or supply chain crises, gaining flexibility and responsiveness, and becoming more sustainable and resilient while staying competitive.
Keep reading to discover everything you need to know about On-Demand Manufacturing—from its benefits and future potential to its current role in today's manufacturing industry. Learn how CAD Rooms can streamline your product development process, helping you bring your product to market faster.
What is On-Demand Manufacturing?
Imagine a world where companies can quickly and efficiently make parts and products based on internal or market needs instead of producing large quantities of a standard product they may or may not sell. That is the world on-demand manufacturing is creating.
Traditionally, companies produced larger quantities to meet demand and reduce production costs, which often resulted in excess inventory and higher prices for storage and transportation. Manufacturing what a company needs when it needs it allows them to be more flexible and responsive to changing market demands while reducing its environmental impact.
From startups to SMEs and larger enterprises, on-demand manufacturing enables more effective product development. The ability to manufacture anytime, anywhere leads to greater customization, flexibility, speed, and many other advantages that result in superior product outcomes.
The origin of On-Demand Manufacturing
The concept of on-demand manufacturing, also known as just-in-time manufacturing (JIT), originates in Japan in the 1950s and 1960s. Toyota developed it as a way to improve efficiency and reduce waste in the production process.
Toyota’s JIT production system involved producing goods only when needed, rather than bigger batches that may store unnecessarily for a long time. JIT allowed the company to reduce inventory costs and be more flexible and responsive to changing market demands.
The success of such a production system inspired other companies to adopt similar approaches, and on-demand manufacturing has become a very relevant trend in modern industry. Companies in various sectors use on-demand manufacturing, including automotive, electronics, and consumer goods.
What are the key characteristics?
Customization: On-demand manufacturing allows companies to produce based on specific production needs, enabling them to offer greater customization and personalization, which is increasingly essential in today’s market.
Speed: It allows for quick and efficient orders, giving companies the capacity to be more responsive to changing market demands and meet customer needs promptly, optimizing lead times.
Flexibility: It gives companies more flexibility in their production processes, increasing their adjustment capacity and producing what is needed when needed.
Efficiency: It promotes more efficient use of resources, as companies can produce only when needed. Efficient fabrication helps reduce waste and high inventory costs without compromising the capacity to deliver in quality and time.
Sustainability: It can help companies reduce their environmental impact by reducing the number of excess inventory levels and allowing for more efficient use of resources, making on-demand manufacturing a more sustainable production model.
Benefits of On-Demand Manufacturing
Incorporating this manufacturing method has several benefits for companies of all sizes. Some of the most important are:
1. Cost savings.
One of the main competitive advantages is cost savings. By producing based on market demand and need, companies can avoid spending on finished products that aren’t guaranteed to be sold or used, reducing high costs related to more transport and storage facilities.
2. Reduce excess inventory
The inventory management of traditional, more extensive production series represents a costly part of a company’s budget. By reducing excess inventory, companies cut on waste, labor, and storage size, improving their bottom line.
3. Improve quality management
On-demand manufacturing enables faster product development cycles by reducing the time required for iterations. Companies can ensure that their parts and products meet their specifications more quickly before going to market, leading to better quality management and faster approval of product prototype designs.
4. Faster time-to-market
A faster time-to-market is one of the critical benefits of on-demand manufacturing. With a responsive supply chain, companies can adapt swiftly to market changes, maximizing their prototyping capabilities and accelerating the design-to-launch process, which ultimately leads to increased revenue.
Industries using On-Demand Manufacturing
On-demand manufacturing is us in a variety of industries, including:
Automotive
Electronics
Consumer goods
Medical
Aerospace
Challenges in the adoption of On-Demand Manufacturing
Making the change can be perceived as a significant challenge for companies when making the transition, but with every challenge, there’s an opportunity. Here are some of the most common challenges:
Finding the right technology.
On-demand manufacturing requires advanced production systems that can quickly and efficiently produce parts and products based on specific orders. Adopting the new production processes may require some time investment.
Management and coordination.
A high level of coordination and communication between different departments and team members, such as design, engineering, and production, is desirable to ensure an excellent manufacturing process. Getting these departments to work together effectively can take time and effort, especially for companies accustomed to traditional production models.
Supply chain and logistics.
It can be a significant change, as it requires companies to adapt to a new production model and may require adopting new systems and processes. Supply chain managers can significantly increase their company’s profits by implementing this production model.
On-Demand Manufacturing Services
Explore the benefits of on-demand manufacturing with CAD Rooms' cloud-based PDM platform (Link TBC). Our Business Plan(Link TBC)offers integrated manufacturing services like CNC machining, 3D printing, and injection moulding, allowing you to seamlessly manage your entire product development process, accelerating your time-to-market and ensure high-quality results.
Book a demo today(Link TBC) to see how CAD Rooms can streamline your workflow. Plus, take advantage of our free trial—no credit card required (Link TBC).
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