Benefits of Small Batch Production

An artisan from the state of Oaxaca, Mexico working on palm leaf lamp shades // Photo Credits: C. Penn

Benefits of Small Batch Production

One of the most popular questions we get here at Custom Tradition is WHY do we always only offer our home decor goods in small, limited quantities. Ordering and/or producing goods in small batches is one of many methods that small businesses can use to not only ensure the sustainability of our planet, but also the sustainability of their brand.

What is Small Batch Production?

Small Batch Production (SBP) is typically when a company produces less than 500 units of a specific product. During the production process, new items aren’t made until the previous batch has been completed. Compared to mass production, this model helps reduce waste and adds more flexibility for the producer in the event that errors are made or something needs to be changed.

The increase in fast fashion companies like SHEIN and FashionNova have heightened awareness around the waste that is a result of this kind of model. More people are learning about its harmful effects on the planet and companies have begun to make more of an effort to balance their production with actual demand and focus on more sustainable methods.

As a small business, Small Batch Production is a no-brainer, not only because of its positive effects on the planet, but also because of how it helps ensure a sustainably productive business model. 

Below we share THREE main benefits of small batch production and why it is especiall helpful for small businesses:

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It’s Affordable

For small business owners, managing and minimizing excessive costs is extremely important. In this case, Small Batch Production is the cure: it allows you to save money and test out your market. Producing in small quantities means you need less funding for startup costs. It gives owners the opportunity to focus on other important aspects of their business, such as marketing. 

Finally, fewer items makes manufacturing costs low and requires less storage space. You no longer need to worry about investing in a massive warehouse to hold your products since you don’t have that many. 

Quality Management

When a small business produces in smaller quantities, there is more time to catch errors in the production stage. For Custom Tradition, we have had various moments with our artisans where there was confusion in communication regarding a specific design. The simple fact that we only ordered a small quantity of this product allowed us to halt the production process and make corrections. By the time we caught the error, there had only been 3 units made, which helped us reduce the amount of waste that we would have potentially caused if we ordered a larger quantity.

For us, as a fair trade business working with handmade items, it is more efficient to correct errors sooner than later. Handmade production takes way more time than machine-produced items, so working in small batches with handmade artisan goods is crucial to maintain consistency of quality. 

Room for Flexibility

One thing I love about Custom Tradition and working with small batch quantities with our partner artisans is that we can always change the items we produce to keep up with new demands from our market and customers. Trends are always changing, so this kind of model keeps us on our feet and open to the changes that come our way.

Additionally, when you follow a sustainable production model such as that of small batch, and you are also in the fair trade industry, you have more time to communicate to your artisans about changing a product due to customer demands. Small batch production allows us to react quickly and make changes as they come, versus producing so much of one item that, even if it is defect, we have no choice but to sell it because of the large quantity we have in stock.

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Not all businesses will find the small batch model perfect for them, but in a world where waste is constantly and consistently increasing, it is important to begin to consider small batch production. We hope that, if you are already a small business owner (or if you’re considering being one), that you look into SBP and see how it can help you minimize costs while allowing you to grow your business beyond your wildest dreams!