Order sheet metal parts online: Advantages and disadvantages of on-demand platforms for parts production

Digital transformation has revolutionized the way companies handle manufacturing orders. In this age of connectivity and automation, online manufacturers have emerged as attractive options for companies that need to produce parts and prototypes.

Upload drawings and order a sheet metal part online at the push of a button. This was unthinkable a few years ago and still raises many questions for experienced buyers. These platforms offer convenient solutions for procuring manufacturing services. After the initial euphoria, the limits of these concepts also became apparent. In this article we will take a closer look at the world of online manufacturers, analyze their advantages and disadvantages and finally conclude when these platforms are the best choice and when it is better to buy sheet metal parts to rely on professional intermediaries.

The world of online manufacturers

What are online manufacturers?

Online manufacturers are platforms that enable companies to place their manufacturing orders online and access a broad network of manufacturing partners. These platforms provide a convenient way to produce sheet metal parts and prototypes without having to physically negotiate with different manufacturers.

How do online manufacturers work?

The way online manufacturers work is relatively simple from the user perspective. Companies upload their CAD files and specifications, select the desired materials and quantities, and then receive offers from various manufacturing partners on the platform or from the operator directly. This allows companies to compare prices and choose the best partner for their needs.

The advantages of online manufacturers

Speed ​​and convenience

One of the most obvious strengths of online manufacturers is the speed and convenience with which manufacturing orders can be processed. Instead of wasting days or even weeks searching for suitable manufacturers and negotiating, companies can start their inquiries on these platforms in minutes.

Access to a wide network

Online manufacturers usually have a wide network of manufacturing partners. This means companies have access to a wide range of manufacturing capabilities and specialists, regardless of their geographical location.

Transparent pricing

Most online manufacturers offer transparent pricing. Companies can calculate the costs of their production orders in advance and plan their budgets accordingly. This helps to avoid unexpected cost increases.

The challenges of online manufacturers

Quality control

One of the biggest challenges when using online manufacturers is controlling the quality of the parts produced. Since companies often cannot be there in person to monitor the manufacturing process, this can lead to quality problems. It is important to carefully consider what quality control mechanisms the platforms implement on their network.

Limited customization options

Online manufacturers usually offer standardized processes and materials. If your project requires special customizations or requires very specific materials, you may encounter limitations. In such cases, it may be difficult to achieve the desired results.

Limited communication with manufacturers

Although online manufacturers offer a convenient solution, they can limit face-to-face communication with manufacturers. This can be problematic if you have complex requirements or need to make changes during the manufacturing process.

Little control over the supply chain

Many on-demand platforms act as retailers. For example, if a customer orders a small series of sheet metal parts, this order is passed on to a subcontractor. This means that a lot of control over the supply chain is lost and there is no guarantee that the same manufacturer will be used for the next order. As a result, learning effects can hardly be achieved in the future.

When are online manufacturers the best choice?

Online manufacturers are an excellent option for companies that need to produce small batches or prototypes and value convenience and speed. They are particularly suitable if:

• The quantities are low, which makes the search for conventional manufacturers uneconomical.
• You rely on fast order processing.
• You need access to a wide range of manufacturing services and materials.
• The parts are relatively simple and standardized, so quality and customization are less critical.

When is it better to use professional intermediaries?

While online brokers undoubtedly have their advantages, there are situations where professional brokers may be a better choice. This is the case if:

• You are producing larger series of complex parts and looking for the best prices.
• Your projects have special requirements that require close communication with manufacturers.
• You want to further develop existing suppliers and build long-term partnerships.

Conclusion

Online manufacturers are undoubtedly a valuable addition to the modern manufacturing landscape. They offer speed, convenience and access to a wide network of manufacturing partners, making them ideal for small series and prototypes. However, when it comes to larger series, complex parts and developing long-term supplier relationships, companies should consider professional intermediaries. These intermediaries can facilitate face-to-face communication with manufacturers and negotiate the best prices for larger orders. Overall, the choice between online manufacturers and professional intermediaries depends on the specific needs of your business, and carefully weighing the pros and cons of both options is essential to making the right decision.

Last revised on September 6, 2023 by Andreas Janisch