OEMs, Retailers Push On-Demand Manufacturing

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Stock Keeper
Push On-Demand
Parser   11/8/2011 12:27:46 AM

I think this trend is only due to very conscience investors. Unless there is a demand for a product no-one wants to put money out for production. The same is in startup companies. Investors look for startups which almost guarantee a success. 

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Supply Network Guru
Don't believe it
FLYINGSCOT   11/8/2011 5:15:17 AM

First of all, judging by your photo there is no way you could be old enough to have a daughter that drives a car ;-)

I have seen a lot of this just in time manufacturing in larger items as suppliers do not want to take the risk of holding stock.  I reckon this trend will continue until the economy picks up and more people have cash to buy stuff.  then people will not want to wait for their goods and so suppliers will be forced to hold stock or lose the customer.

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Supply Network Guru
jbond   11/8/2011 7:25:18 AM

This seems to be a trend lately. Even though this practice has been going on for years, with the economic turmoil starting in 2008, it seems more companies are looking at keeping limited inventory so they don't have too much money tied up on items sitting in a warehouse. There will be some companies that lose business by following this practice, but others will manage just fine. Like you said, if a person wants a particular brand or item, they will wait, just not wait forever. 

Barbara Jorgensen
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Barbara Jorgensen   11/8/2011 8:39:08 AM

In my experience, on-demand works best for digital content, but still faces challenges in the hardware arena. Until one organization--such as a distrbutor--is willing to take on 100 percent of the risk of holding inventory, there will always be glitches that interefere with a true one-demand model. That said, it would eliminate a lot of problems in the supply chian if properly executied.

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Supply Network Guru
Re: On-demand
t.alex   11/11/2011 7:20:32 AM

I think for hardware-based products, it requires tight control of inventories, supplies, as well as precise prediction of market demands. Practising Just In Time manufacturering is not simple.

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Stock Keeper
Re: On-demand
Tvotapka   11/13/2011 11:14:56 PM

On-demand manufacturing, eh? Maybe I'm too cynical. I don't see how the channel benefits short or long-term. What are purchasers/engineers saying?

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Stock Keeper
Thoughts on the on-demand model
arenasolutions   11/8/2011 12:36:40 PM

It's interesting you mention this, I've been talking about this a lot with my CTO at Arena as it relates to the viability of open-design. Manufacturers getting their start on sites like Kickstarter have relied on pre-committed orders and the on-demand model to grow business. We were thinking this could turn into a path where an open-design, on-demand model makes sense for some OEMs. For example, if you had a machine shop, you could publish a catalog of community-created open designs, and allow pre-paid demand to drive your production schedule, this would be a great way to get interesting, innovative products to the customer as needed.

Here's the full article if you're interested (but it's more about open-desin than on-demand.)

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Supply Network Guru
Re: Thoughts on the on-demand model
Jacob   11/9/2011 6:50:48 AM
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Laurie, in an economic slowdown situation most of the companies may prefer on demand manufacturing. During the slow down period, the spending power and cash rotations are less and none of the manufacturing centre will go for huge capital investments. They prefer on on-demand manufacturing or assembling policy. The market mantra is “Demand Vs production’

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Supply Network Guru
Customers' money will be blocked
prabhakar_deosthali   11/8/2011 11:01:10 PM

On demand manufactruing is good for the supply chain as a whole because there is no dead inventory of the finished product at the manufacturer's end. For the ramaining supply chain , agile systems are required to keep up with  the fluctauing and just in time demands of componenets from the manufacturers.

For customers, on demand manufactruing means they need to order first, based upon ,not seeing the real product but based upon the product catelogues. The customers will be blocking their money by making advance payments with the order.

So the factories will be running on custmer's money taken upfront alongwith the orders.

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