On-demand manufacturing took longer to mature than some people had hoped. The idea is simple. Don’t build or complete your product until someone orders it.
The benefits are numerous, including greater customization, increased sustainability, cross-border e-commerce, and lower inventory carrying costs.
On-demand manufacturing projects begin only after the customer places an order.
Zero stock
Print-on-demand companies, which are part of on-demand manufacturing, have long touted benefits and often focused on reducing costs. inventory cost And it borrows the nickname “zero inventory” from heavy industry.
“One of the exciting things about the zero-inventory model is that it allows more people to start and expand their businesses globally, without the hassles of inventory management, shipping, and large up-front investments. ,” Julie Ryland, vice president of public relations and communications for print-on-demand sourcing company Gelato, wrote in an email message to Practical Ecommerce.
“Looking at the bigger picture, this model will help redefine global manufacturing and distribution, empowering small business owners and creators to start and grow their businesses in a way that is better for both people and the planet. “The shift from mass production to on-demand mass customization also represents a market opportunity for the printing industry,” Ryland continued.
The opportunity has arrived. The global market for print-on-demand products is expected to reach $10.2 billion in 2024 and $87 billion in 10 years, according to a July 2024 report from consulting firm Precedence Research.
In the United States, Precedence predicts that the print-on-demand industry will reach $2 billion in 2024 and $22 billion over the next 10 years. This is an average annual growth rate of approximately 27.6%.
On the other hand, the scale of on-demand manufacturing is small. According to various sources, the global market for on-demand manufacturing (ODM) using technologies such as 3D printing and computer numerical control machining is expected to be approximately $10 billion in 2024.
If we limit ourselves to products sold via e-commerce, this segment becomes almost non-existent.
But there is also a glimmer of hope.
ODM opportunities
Print-on-demand is proving possible. Many entrepreneurs run profitable businesses using competitors like Gelato, Printful, Gooten, and Printify.
These printing solutions integrate with major e-commerce platforms for a truly zero-inventory, global solution. dropshipping business.
What if you could do that with other products too? Even large items.
Here is an example. The Idaho-based manufacturer, which specializes in fishing kayak trailers, plans to launch an on-demand trailer system in 2025. Once a customer places an order, workers put the metal sheets and tubing through a laser cleaning, cutting and welding process to produce the kayak trailer. Shipflat Trailer Kit. Ready for packaging in a few hours.
This general idea also applies to other products such as furniture, antique auto parts, medical equipment, and jewelry.
ODM for e-commerce
E-commerce adoption requires implementation, automation, and integration of on-demand manufacturing.
implementation
Implementation in this context means having a shop willing to produce a particular product when an order comes in.
For example, hundreds of print shops are connected to Gelato and Shopify, ready to accept standard blank t-shirts, print them in a standard manner, and ship them on behalf of merchants.
The on-demand manufacturing industry requires this same level of in-store implementation. Examples of custom-made fishing kayaks are from brands that actually produce the products. They had specialized equipment and owned raw materials. For on-demand manufacturing to work broadly with e-commerce, job shops need to be able to receive orders and manufacture them in a standard way.
automation
Automation and even artificial intelligence can help manage factory capacity and process technical files.
First, the network must instantly match orders to the most suitable manufacturing facility. The print-on-demand service automatically order t-shirts Send to the nearest available printer with the appropriate equipment. Creating similar systems for complex manufacturing requires advanced automation and intelligence to assess factory capacity, workload, and geographic location.
The second is the technical challenge of file preparation. Unlike standard product photos, print on demandmanufacturing requires precise technical specifications. Each facility may have specialized machines or different equipment that requires specific file formats for 3D printers. Introducing AI that can convert file formats.
To scale on-demand manufacturing, these automated systems must work behind the scenes to make complex decisions in an instant while keeping the process simple for sellers.
integration
Integration may be the last step. This includes making it easy for small and medium-sized e-commerce shops to start an on-demand manufacturing business. This process could include adding apps to Shopify, installing a drag-and-drop product designer, selling custom products, and more.
Companies that can solve these three hurdles have the potential to bring on-demand manufacturing to e-commerce.
