On-Demand vs. Batch Manufacturing: Choosing the Right Apparel Production Method

Written by Rachel Blaydes

 

When exploring the dynamics of modern garment manufacturing, on-demand and batch production stand out as distinct approaches, each with its own set of advantages and challenges. On-demand manufacturing is a system where goods are produced only when they are ordered by customers, and batch manufacturing involves producing a set quantity of products at one time, before inventory is sold. The size of both your company and your expected order size can influence which manufacturing type that is right for you.

Sewbots stitch fabric together while human workers oversee the operation.
Image via texintel.com

On-Demand Manufacturing

On-demand manufacturing focuses on producing small clothing orders in response to customer demand with a quick turnaround time. This manufacturing style requires a strong relationship with a supplier who has the ability to provide product quickly and efficiently. The manufacturer's system and your order software are integrated so as orders are received, the manufacturer automatically receives the order, which streamlines the process.

 

On-demand manufacturing can take anywhere from a few days to a few weeks once an order is placed. Because large orders are not placed ahead of time, companies are less reliant on forecasting. The order cadence can be highly variable with this type of manufacturing because they are based on customer demand and are not placed in advance.

 

Although components must be on hand, this manufacturing method helps to minimize excess inventory and the space that is needed to house stock, which allows for more capital flexibility. On-demand production offers the ability for customization of designs. Consumers have the option to customize the product based on what style choices are available and technology the company's manufacturer offers, such as embroidered emblems, color combinations, or using a different patterned fabric. Customizations that are complex or highly specialized may require a longer lead time. 

 

Due to the lack of stock, on-demand manufacturing is often more sustainable than batch manufacturing. There is a possibility for fabric and trims to be leftover at the end of the season, but those can be used to make future garments.

 

This type of manufacturing reduces risk for small businesses because they are not ordering product stock that may or may not be sold. This means there is no excess inventory at the end of the season, so your company will not have to deal with markdowns and unsold garments. With on-demand production, products can be drop shipped directly to the customer from the manufacturer to streamline the delivery process. 

 

Pros:

  • Quick turnaround time

  • Allows for capital flexibility

  • Reduces risk of unsold product

Cons:

  • Customizations may extend lead time

  • Requires a supplier who can provide products quickly

Top-down view of a large apparel manufacturing floor. Workers are all wearing white clothing and sitting at sewing machines.

Large Batch Manufacturing

Large batch manufacturing is a more traditional production method that focuses on producing large quantities of garments in one run before they are needed or sold. In this type of manufacturing, an order consists of a batch of identical components, where all materials move through the process simultaneously.

 

This production type requires more trend, market, and historical research than on-demand because commitments need to be made in advance. Lead times with international manufacturers average around 18 months from the design to product in your warehouse. 

 

Supplier relationships are crucial to ensure that they have available capacity to produce amounts of your desired product. Large batch manufacturing emphasizes efficiency in the production process. Because the manufacturing process is so efficient and the order size can be thousands of garments, the production cost per item is reduced. This is a very cost-effective way to manufacture garments for both large businesses and large orders.

 

Producing large batches of clothing requires having a distribution center to receive and ship your stock. Responses to emerging trends can be costly and time-consuming. The downside is the potential to end up with overstock that remains unsold at the end of the season. However, you may still be able to sell these garments at a reduced price or in an alternative market.  

 

Pros:

  • Utilizes economies of scale

  • Efficient production process

  • Beneficial for large businesses

Cons:

  • Requires paying for a distribution center

  • Potential for unsold stock at the end of the season

Women sitting at sewing machines in a small factory, putting together garments.

Small Batch Manufacturing

Small batch manufacturing is similar to large batch manufacturing, but works with limited quantity and small volume orders only. Smaller order sizes can be useful for testing out new design ideas to see how your customers like them. This type of manufacturing is used by small businesses and companies that are debuting limited edition releases for a season. Lead time can be similar to large batch orders, but the time could be shortened by utilizing regional suppliers and warehouses.

 

Compared to large batch manufacturing, small batches come with a reduced inventory risk because there is less stock to house and sell. If some of your garments are very popular, there is a chance that you could run out of product while there is still a demand for it. There is a slightly higher production cost per unit due to the smaller order size, but there are often faster turnaround times. 

 

Pros:

  • Helpful for testing new colors, fabrics, or silhouettes

  • Reduced inventory risk compared to large batches

  • Fast turnaround times

Cons:

  • Requires warehouse to hold stock

  • More expensive than large batch manufacturing

Utilizing a Hybrid Manufacturing Model To Respond To Trends

A hybrid manufacturing model can be used to increase order agility and help respond to changing trends more efficiently. This can look like using batch manufacturing for your initial order, and then utilizing on-demand manufacturing for reorders. A hybrid solution lets you reorder garments based on sales predictions and allows you to adjust which sizes and silhouettes are added to the order. This means you will need to make sure that your designs are approved and that your desired materials will be available at each manufacturer.

 

Pros:

  • Increases order agility

  • Helps respond to trends efficiently

  • Lets designers adjust sizes and silhouettes ordered

Cons:

  • Need to go through an approval process with each manufacturer

  • Potential to need materials available at multiple manufacturers

As the fashion and manufacturing industries continue to evolve, these approaches highlight the importance of balancing efficiency, cost-effectiveness, and sustainability to meet changing consumer demands and environmental considerations. What does the future look like? Integrating AI technology into forecasting will allow a continued balance of manufacturing methods that utilizes all existing production processes. We anticipate on-demand manufacturing will play an ever increasing role in the process.