Advantages of Sub-Assembly and Full Assembly
Lower capital costs
By reducing storage and inventory needs, the sub-assembly and full assembly strategy substantially reduces capital costs, such as warehousing and investment in materials and raw supplies. It allows the manufacturer to adopt a lean business model, with fewer sunk costs.
Customizability of orders
Manufacturers often face a rising demand for customized goods from customers, and such needs cannot be met if they stock up on finished goods. The sub-assembly and full assembly strategy allows customers to order a customized product by keeping a variety of sub-assembly and full assembly parts in stock, which can be put together to produce a unique finished good.
Quick delivery times, even with customization
The sub-assembly and full assembly method allows for quicker delivery times by keeping all the parts ready and taking time only for the final assembly. By optimizing final assembly times, manufacturers can deliver customized goods relatively quicker than if they were using the make-to-order strategy.