The Key Drivers Behind the Rise of On-Demand Manufacturing

The concept behind on-demand manufacturing sounds simple, so why is it that it’s revered as something recent or novel? The answer is in the timing. Relying on an on-demand model for high-demand manufacturing products was not at all feasible.

The available technology, communication barriers, and supply chain intricacies prevented businesses from leveraging it for their growth. Moreover, the population, in general, wasn’t aware of environmental challenges, and the demand for sustainable practices was severely limited to some areas.

However, things changed recently. Now, on-demand production is not only feasible but also recommended for the growth of any business. There are several factors behind this phenomenon, but the following reasons are the most important:

1 – Advances in Available Technology

This is perhaps the most important factor that has been nothing but a game-changer for the industry. Recent advancements in cloud computing, automation, and manufacturing techniques themselves have redefined what’s possible.

Take 3D printing as an example. A technology once considered impractical for the manufacturing industry is now at the helm of it. From prototyping to production, 3D printing is used everywhere and continues to advance every single day.

Similarly, the digital manufacturing process and Industry 4.0 combined have also played a huge role in both decentralizing manufacturing and enhancing the overall experience.

From designing innovative products to analyzing possible variants, and even optimizing the said design for manufacturability, current technological advancements simplify it all.

2 – Growing Customer Demands

Another factor behind the exponential growth of on-demand manufacturing is the maturity of customers. Modern customers require more customized options with greater production flexibility, which is next to impossible in any traditional setup.

Furthermore, modern customers also need more tailored solutions for their specific applications because of the growing efficiency requirement. Any B2B customer would try to focus more on a product feature that enhances their specific application, making it a requirement for more specialized solutions according to the client’s design.

3 – The Requirement to Curb Costs

The increased competition in the market means that all businesses, including manufacturers, are under immense pressure to improve their bottom lines. The best way to do so is to ensure efficient production while implementing novel methods to reduce costs. The process may sound simple but it’s not as focusing too much on cost can compromise quality and that is something no manufacturer will ever accept.

The concept of on-demand manufacturing can address the cost problem for small batches without any compromise on quality. It simplifies production and curbs exuberant inventory costs. Moreover, manufacturing on-demand also eliminates the need for Minimum Order Quantities (MOQs), which allows businesses to order the exact quantity they need and save money on transportation as well.

4 – The Pursuit of High Efficiency

With so many businesses in the market and a new product or design coming every day, there is a high need for a manufacturing concept that facilitates rapid prototyping and early market testing. Production on an on-demand basis is exactly what the industry needs. Customers are free to order as few as a single part, without any minimum quantity requirement, enabling them to assess the feasibility of a design.

Now they can carry out prototyping and design testing for a myriad of design iterations at the same cost it took for a single design test.

Apart from that, adopting a production strategy aligned with incoming demand can assist businesses in maintaining flexibility. Modern markets are dynamic and businesses need the ability to respond as quickly as possible to any changes in the market conditions.

5 – Globalization and Supply Chain Disruptions

The ever-increasing globalization means that even the smallest event in one industry can have a trickling impact on another. Couple that with multiple instances of supply chain disruptions due to political, economic, or other out-of-control situations, there is a growing need to have a local backup plan.

On-demand manufacturing exists to facilitate quick deliveries and customized operations. That’s exactly what the industry needs.

Manufacturers can quickly contact a local manufacturing service for excellent services and quick delivery of their product. Localized manufacturing allows businesses to circumvent supply chain issues and disruptions quickly. This flexibility offered by on-demand projects makes them an ideal choice for businesses that want to maintain their competitive edge through consistent services and timely deliveries.

6 – Growing Environmental Concerns

With growing concerns regarding the environmental impact of industrial processes, modern customers require businesses to take responsibility and work on reducing their carbon footprint. Moreover, governments also incentivize going green and curbing the overall environmental impact of their operations.

Manufacturing on-demand can reduce waste and energy consumption while offering tailored solutions for customers. This means a win-win situation for businesses and further demonstrates the importance of opting for an on-demand model rather than a traditional one.