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On-Demand Manufacturing – What it is and How it Works

Ed Edwards
6/10/2022 | 5 min read
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A brass part featuring drilled holes of various sizes.

On-Demand Manufacturing, also known as Manufacturing on Demand (MOD), is a relatively new concept to the world of manufacturing. And it is one that ushers in a dramatic change to the process by which buyers and engineers can interact with suppliers – especially in the case of custom fabricated products. The rise of cloud-based technologies and platforms has changed the landscape for the manufacturing space, and in so doing, offers the potential to eliminate delays in quoting, increase efficiencies in supplier management, and improve the visibility for orders within the supply chain – all managed in a convenient online platform accessible from anywhere.

In this article, the concept of on-demand manufacturing will be explored in detail with specific emphasis on its applicability to custom manufacturing. To provide an in-depth look at how the process works, we will illustrate the concepts and steps associated with on-demand manufacturing using Xometry, a leading On-Demand Manufacturing Platform. 

Let’s begin by examining the process for on-demand manufacturing and contrasting that with the traditional approach that is taken when seeking a custom-manufactured part or product from a supplier. Next, we will explore the advantages and benefits of on-demand manufacturing, discuss its limitations, and then walk through the specific steps that an engineer or buyer would take to utilize Xometry’s platform to obtain quotes, configure their parts for pricing, checkout & purchase, and manage existing orders. 

Traditional vs. On-Demand Manufacturing

From a broad perspective, on-demand manufacturing differs from traditional manufacturing in several ways. With traditional manufacturing, parts are typically produced in large quantities and stored in inventory for subsequent sale and delivery. The large quantity production allows for economies of scale to be realized, helping to reduce unit cost by spreading fixed costs over large production output. The disadvantage of this approach is that the physical inventory needs to be warehoused and managed, adding those costs to the process. And in some industries where the product either has limited storage life or will become obsolete in short order, a poor projection of the needed production quantity can result in excess inventory being manufactured that remains unsold and which may need to be disposed of or sold off at a discount to clear valuable warehouse space.

With traditional manufacturing, quoting challenges also exist, especially for custom products where buyers and engineers need to contact suppliers to request quotes, follow-up with answers to production questions, and then work to negotiate pricing.

On-demand manufacturing, rather than fabricating parts with large minimum order quantities and storing those goods in inventory, is built around producing only what customers need when they need it. By taking advantage of cloud technology and a self-service model centered on a digital platform, customers can get quotes for parts in real-time and can easily stay connected with the production of their orders throughout the manufacturing process. They can, therefore, order the precise quantity needed to satisfy their production requirements, enabling a just-in-time (JIT) manufacturing strategy to be adopted across their supply chain.

The platform-based approach that is core to on-demand manufacturing also transforms other aspects of the manufacturing process, some of which have been sources of frustration for buyers and engineers. Table 1 below provides a contrast of traditional and on-demand manufacturing in the areas of sourcing, quoting, lead time, design for manufacturability (DFM), and communications between buyer and supplier.

Table 1 – Comparison of Traditional and On-Demand Manufacturing

Parameter

Traditional Manufacturing Approach

On-Demand Manufacturing Approach

Sourcing approach

The buyer must source potential suppliers

The platform leverages existing manufacturing partners for fulfillment.

Quote process

Quotes are conducted over email which can take days or weeks to finalize

Quotes are delivered instantly (or within hours for complex parts) through an online platform

DFM process

DFM (Design For Manufacturability) feedback is delivered via email, phone, or in-person

DFM feedback is auto-generated through the platform for all CAD models uploaded

Lead time

Often several days or weeks, depending on the selected vendor or machine shop’s capacity

Rapid delivery in days for most parts; Unused manufacturing partner machine capacity is intelligently analyzed for efficient production and maximum throughput

Communication process

Buyer can communicate with vendors directly via email and phone

Buyers communicate with the manufacturing support team through the platform, via chat, email, phone, but not directly with the vendors

Capabilities

Capabilities limited to the specific focus of individual vendors -the buyer is typically responsible to coordinate between suppliers for post-processing work

Platform functions as a one-stop-shop for a wide variety of manufacturing capabilities utilizing their partner network

 

With on-demand manufacturing, the digital platform automates process steps that have usually been performed manually in traditional manufacturing settings. The automation is backed-up by a team of manufacturing engineers and production specialists that manage the workflow for all clients and can step-in as needed to address issues and offer DFM guidance. The result of this difference in approach significantly impacts the responsiveness of this model when contrasted with the traditional manufacturing process.

Advantages of On-Demand Manufacturing

From the contrast presented above, the advantages of the on-demand manufacturing model become evident. The platform serves to centralize and automate the interactions between buyer and supplier to the greatest extent possible, which removes delays and inefficiencies inherent in communications at each step of the production process. The result is a streamlined process that delivers a number of key advantages, including:

  • Time and efficiency benefits
    • Rapid turnaround time on quotes – instantaneously or in a short time after upload of a CAD model
    • Dramatic reduction in lead time as available resources across suppliers can be managed more efficiently through the platform
    • Single point of contact that manages all aspects of the production process, improving communications
    • Agility – In a world shattered by health pandemics, trade wars, and severe climatic disruption, having access to a prefabricated network of vetted global suppliers provides buyers with manufacturing agility and options to shift critical supply chain production to different geographies on the fly as needed.
  • Cost Savings
    • Reduced supply chain overhead – using an on-demand platform allows buyers to avoid the expense of setting up a supply chain for a new product as the platform manages that process automatically, lowering internal costs and headcounts.
    • Reduced inventory costs – with rapid turnaround times on parts and low minimum order quantities (MOQs), buyers can minimize inventory on hand, freeing up valuable capital for other more productive purposes
  • Process Benefits
    • Feedback on Design for Manufacturability (DFM) for every part uploaded to the platform, delivered instantly
    • Access to a large network of vetted suppliers for a wide range of manufacturing services through a single online source
    • Flexibility in the selection of global versus domestic production
    • Transparent visibility into production status
    • Centralized access to historical order data in the cloud, including 3D and 2D files, inspection reports, DFM feedback, and order invoices
    • Standardized quality control processes across all suppliers in the network

Potential Drawbacks of On-Demand Manufacturing

While on-demand manufacturing brings welcome improvements to the manufacturing process and affords numerous benefits to the buyer, there are some limitations to consider:

  1. Production volume – On-demand manufacturing is best for new product introduction (NPI), from early prototyping, into EVT/DVT/PVT, into bridge production quantities, up to 1 or 2 million units. For sustained production at higher volumes, it may be best to seek out a more traditional contract manufacturer that specializes in very high-volume production supply chains.
  2. Supply chain control ­­– in exchange for rapid turnaround and efficiency, buyers and engineers using on-demand manufacturing give up control over the supply chain since the platform manages the selection and control of the suppliers used for production. If very tight supply chain control is desired for the development of critical parts, it may be best to consider manufacturing those parts either in-house or to directly outsource the production to a supplier with whom a close, direct relationship can be developed and maintained.
  3. Uniformity of quality standards – the degree to which an on-demand platform has implemented a uniform set of quality practices across the network of suppliers with whom they partner can vary from one platform to another. Some platform providers, like Xometry, take deliberate steps to emphasize quality and assure a uniform approach with their manufacturing partners, while others function more as a middleman – facilitating the buy/sell marketplace but taking more of a hands-off approach to the details.
  4. Service availability – there can be differences in the range and depth of services available from on-demand platforms, depending on the manufacturing stage involved, so it is important when choosing a platform to select one that can provide the needed capabilities.

How to Use Xometry for On-Demand Quotes and Orders

The starting point for manufacturing a product is to have a viable design, most often in the form of a 2D or 3D CAD model. Using Xometry’s on-demand manufacturing platform to obtain quotes and order parts entails 5 simple steps.

  1. Create a free account at Xometry.com
  2. Upload 3D CAD models and 2D drawings, if required, for the part(s) you need to be quoted
  3. Configure your manufacturing selections (e.g. process, material)
  4. Review the DFM suggestions
  5. Checkout and track your order

Creating an Account

Creating an account is easy – first and last name, phone number, state, and email address are all that is needed (plus a password of your choice).  A welcome email will confirm that your account was created. Based on our experience, Xometry will not spam you with tons of emails.

Uploading CAD Models

Once you have created an account, you can upload CAD files of parts to be quoted. The Xometry platform accepts common file formats including. STEP, .STL, .SLDPRT, and .PDF files. If you’d like to test the platform, here is a 3D model you can use to get started.

Once the files have been uploaded, the platform performs an analysis of the geometry of the part, and then the part is ready to be configured for quoting.

Configuring Parts

To begin configuring your parts, select the Configure button. In the pop-up window that opens, you will select the desired manufacturing process from a dropdown list, with instant quote options such as:

  • CNC Machining
  • 3D Printing
  • Urethane Casting

Other process options are available, including Die Casting or Injection Molding, but those process selections will require manual intervention to complete the quote.

Once the process selection is made, you make a material selection choice. For the CAD file that we uploaded, the dropdown list for materials covered different grades of aluminum, steel, stainless steel, copper, brass, bronze, titanium, as well as a range of plastics and polymers. There is also an option for a custom material choice that allows you to enter an alternative.

With the process and material selections completed, you can add a finish to the material, such as anodizing, ENP, powder coating, or zinc plating. You can also add additional requirements for threaded holes in the model and detail those for each drilled hole in the design or upload a technical drawing to call out feature-specific tolerance requirements.

Once you save the configured part with your options and close the configuration pop-up window, your quote is shown with the quantity ordered, unit price, and extended price based on the production speed option. Editing the fields allows you to see how the price changes as you change quantities or choose different production supplier options including domestic and overseas options with various production speeds.

Reviewing DFM Feedback

Once parts are configured, the Xometry platform provides automated DFM feedback which can be viewed and used to make design modifications as needed. The model we uploaded provided warnings on areas in the design where the minimum recommended materials thickness fell below the standard established (0.5 mm for metals).

At this point in the process, there are options to save, delete, or share the quote. Sharing can be done via email or by copying a share link to send via other channels.

Checkout

The final step in the process is checkout. From the quote summary page, click the “Begin Checkout” button and the platform will take you to the checkout quote page where you will be asked to supply information about:

  • How you would like to receive your order (ship vs. pick up)
  • Where you want your order to go (shipping address)
  • Shipping options (prepaid vs. your shipping account)
  • Payment information (credit card or purchase order details)

Once the checkout quote data is added, you select the “Place Your Order” button, and you are done. You also have the option to download the quote from this page.

Order Tracking & Additional Platform Features

Once your orders have been placed in Xometry’s Platform, access to the production status is readily available by viewing the Orders page, a sample of which is shown below. From this page, you can view the current status of each order, including the shipment date and estimated delivery date for shipped orders. Tracking numbers are available once the order ships and parts can be easily reordered from this page.

You can also review inspection report data, view part photos, and access the drawings for the parts ordered.

Additional features of the platform include a collaboration workspace, where teams can share design details and upload drawings for parts and products. There is also a help center, where users can go for answers to questions about the platform, and a capabilities section that contains knowledge about production and manufacturing processes. These capabilities summaries cover topics such as machines, materials, and design recommendations.

Summary

 For information on other topics, consult our additional guides or visit the Thomas Supplier Discovery Platform where you can locate potential sources of supply for over 70,000 different product and service categories.

 

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