Turning an idea into a reality can be a daunting and tiresome process; creating designs, finding materials and suppliers, outsourcing to reliable manufacturers, and facing hefty levies for proto sampling and small batch orders are some of the many hurdles standing between a dreamer and the product they are aspiring to create. Many smaller scale producers can’t cope when up against the challenges traditional production methods pose, and this limits both retailers and consumers- imagine how many more possibilities there would be out there were production simpler and more accessible!
Armoplast is a part of the growing on-demand manufacturing movement, an innovative method of production to suit the ever evolving retailer-consumer relationship.
Consumerism is evolving, and in a recent Sourcing Journal article CEO and founder of Ziel, Marleen Vogelaar, explained that “companies are losing money because of inefficient supply chain processes and the consumer [] changing its behaviour”. Competition is fierce as consumers face constant exposure to new products, deals, and brands, and keeping up with market trends is almost impossible with the 6-10 month delivery time traditional manufacturing processes take. By choosing on-demand manufacturers like Armpolast, companies are in the best position to quickly meet consumer demands, and cut down costs in the process- a win-win for everyone!
We’ve explained some key take-aways of on-demand manufacturing below, having sourced the following information from this Shopify publication.
Adaptable Ordering
Sustainability is a huge focus of production in recent times (link to leather production article), but the traditional manufacturing methods demand minimum order quantities (MOQ), and this can invariably result in excess stock that must either be marked down or disposed of. The beauty of on-demand manufacturing is that it asks for a low, or no, MOQ. This is a gamechanger for many companies and offers them the opportunity to create prototypes, test market responses, avoid brand dilution with markdowns, better manage stock inventory, eliminate wasting material and financial resources, work with more stable profit margins… need I go on?!
It sounds so simple- order what you need, when you need it- but this hasn’t been an option before, and companies have suffered dearly as a result.
Quick Production Times
The above benefit is also now possible due to a refined production process that can offer an incredible 10 day turnaround time. In the past you needed to separate the processes of creating, sourcing, producing, importing, exporting, trialling etc., and 6 months down the line you still may not have tangible results; full service packages on-demand manufacturers offer take care of these all, and once everything’s in place the physical manufacturing is a breeze. Companies can quickly test their market and adapt products and quantities accordingly without causing lengthy delays and financial penalties.
Improve Cash Flow
Traditional manufacturing methods and the accompanying MOQ’s mean that from one template thousands of products will be made, meaning a hefty investment prior to retail and large quantities of a product in the stock inventory. The worst case scenario with such a set up is that if that product is flawed the consequences- recalling and getting rid of faulty stock, stopping production, having to start again- can deal a killing blow to a brand’s reputation and their finances. Even with a less drastic possibility such as the product simply not appealing to consumers the end result is the same; financial loss, reputation loss, and a whole lot of stock eating away at your finances.
The flexibility of on-demand manufacturing in terms of production time and adaptable ordering drastically reduces the chances of such a catastrophe, and furthermore eliminates many overhead costs that must be factored into the profit equations. Warehouses aren’t needed for mountains of stock; API’s can be used to ship directly from manufacturers; dead stock doesn’t need to be marked down or disposed of; margins are stabilised and chances of financial success are heightened.
These 3 benefits touch briefly upon the advantages on-demand manufacturing offers. In an era of instant gratification, where your every need can be taken care of with a simple click of a button, manufacturing needed to find a way to keep up. Armoplast is proof that this method of manufacturing places quality over quantity and that streamlining the manufacturing process benefits all parties involved. It is sometimes said that events in our lives occur for a reason, a season or a lifetime; on-demand manufacturing’s reason was to adapt to the times, to offer products by the season, and to create a process that will help extend developing companies lifetimes.
