5. No Credit risk - Lastly, there is also a huge financial benefit for not having to mass produce goods. Mass production generates a situation wherein the sales have to be pushed. Since sales are being pushed on to subsequent levels of the supply chain, credit sales must be made. As a result, many companies find that their money is locked away in accounts receivables. More accounts receivables means a higher chance of bad debts. On-demand manufacturing changes all this. There is no need for credit sales. Instead, in most cases customers pay upfront. Therefore, the
need for working eliminated.
capital
is
completely
The bottom line is that on-demand manufacturing is better from a financial, environmental and also from an operational point of view. It is only a matter of time before it becomes the most prevalent way of manufacturing all across the world.
KAIZEN’S OPERATIONS & RESEARCH ENTITY
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