An adhesive dispensing system and method are configured to melt adhesive on demand and maintain the adhesive in a liquid state between dispensing cycles. The dispensing system includes a dispensing applicator with a manifold passage, a receiving device including a receiving chamber for holding a small amount of solid adhesive at the dispensing applicator and a first heating device for melting the adhesive on demand, and a second heating device at the manifold to maintain the temperature of the melted adhesive before dispensing. The receiving device is positioned adjacent to or partially nested within a manifold of the dispensing applicator such that the melted adhesive is delivered directly into the dispensing applicator. The second heating device applies heat energy to maintain the adhesive in the manifold passage as a liquid.