Semi-automated generation of quotes with long-term validity provides quick and easy procurement for buyers with planning security and lower prices
FACTUREE reveals: Instant pricing in Online Manufacturing does not simplify things
Berlin, April 13th 2023 – The global market for custom parts is worth billions of euros. Conventional contract manufacturing is still in the lead but is getting more and more competition from the Online Manufacturing concept. There are, however, great differences among providers in Online Manufacturing – for example with respect to the request procedure, pricing and validity of quotes. Many providers use instant pricing, but this involves more effort on the customer’s part and higher prices. Online Manufacturer FACTUREE (www.facturee.de) explains the reasons and shows how they do things differently.
Independence and reliability were never more important for buyers. In times of supply chain disruptions and ever more rapid changes in markets, they need procurement channels featuring both agility and stability. Conventional contract manufacturing cannot ensure these to the extent required, but Online Manufacturing can. The concept has already proven itself to be the procurement model of the future. Online Manufacturing is based on digitalization, automation and networking and is far superior to conventional forms of procurement. Manufacturing capacities can be easily reallocated to meet changing market conditions. Providers such as FACTUREE are therefore always in a position to deliver, making supply chains reliable and resilient for customers.
Not all Online Manufacturers are equal
While the percentage of Online Manufacturers in the market is still very small, the potential is large and growing. However, there are big differences within the market of Online Manufacturers. Some of them, for example, use instant pricing tools that calculate prices immediately, but ultimately mean more effort and higher costs for customers.
Benjamin Schwab, co-founder and CMO of FACTUREE explains, “To get a price using an instant pricing tool, all relevant information must be entered manually into a form by the person making the request – a very time-consuming process. For large requests with more than 30 items, this can take up to half an hour. Most people don’t have time for this. Getting a quick quote thus comes at the “expense” of the customer’s time. Plus, prices are nominally higher due to the safety buffer.”
FACTUREE does not use instant pricing like other providers in the sector. “In more than 80% of cases, we are able to undercut instant pricing offers that competitors give our customers. For our quotes, we consider and optimize the time actually needed by the user to make the request,” says Benjamin Schwab.
FACTUREE relies on semi-automated quotation and automatic readout and classification of CAD data. Every quote is checked by employees for plausibility. The requests are not restricted to the system, but can also be sent by email, for example.
FACTUREE offers a 14-day period of validity for quotes, which the provider can maintain even in a tense market situation. After the request is received, the quote is often made the same day – but guaranteed within 48 hours.
Increasing price sensitivity among buyers
Under the current conditions and indications, buyers develop a certain level of price sensitivity. This gives an advantage to Online Manufacturers who can offer the best package of price and performance. “We benefit from this development because we are the price leaders in Online Manufacturing. We have this position among other reasons because we purchase large volumes from manufacturers and select the most suitable supplier for the order in terms of price, delivery time and quality based on smart algorithms. We also do not pass on higher prices to our customers, which is rare in times of rising prices for raw materials and energy,” states Benjamin Schwab.
By carefully selecting manufacturers, FACTUREE is able to compensate for effects in the market and react flexibly to new developments. This is possible on the one hand due to the platform approach in which customers’ projects can be bundled and also due to the AI-based selection of the most suitable manufacturer.
FACTUREE has a manufacturing network of around 2,000 partners from nearly all areas and the widest range of manufacturing in the market. The request process is semi-automated, ensuring quick quotes. No registration or system integration is required and there are no participation costs.
“Customers can access our model very easily. There is no need to search for suppliers or to qualify and onboard them. Customers can purchase efficiently and concentrate on their core business. In summary, with Online Manufacturing, we support the agility required today while also ensuring reliability and relief, both in the financial sense and regarding the procurement processes,” concludes Benjamin Schwab.
Profile of FACTUREE – The Online Manufacturer:
cwmk GmbH, based in Berlin, operates under the brand name FACTUREE as the first Online Manufacturer. The company pursues the goal of enabling its customers to procure modern production parts through digitization, automation and networking. FACTUREE has an extensive production network of over 1000 manufacturing partners from the fields of CNC machining, sheet metal production, 3D printing, casting, forging, and surface technology. More than 15000 machines are constantly available for projects. All partners are subject to a continuous data-driven quality management system certified according to ISO 9001. FACTUREE can realize prototyping projects as well as small and large series production. The customer base is located in the most diverse fields such as mechanical engineering, medical technology, model making, robotics, automotive as well as aerospace. Leading industrial companies like Siemens and Parker Hannifin, SMEs, research institutes and universities are among the customers. FACTUREE is active throughout Europe and has a continuously growing number of customers in other European countries.
Further information: www.facturee.de