Have you ever seen the mesmerising movements of a Fused Deposition Modelling (FDM) machine in action, tracing intricate patterns layer-by-layer? Or experienced your design materialising from a resin bath with the magic of UV light?
Additive manufacturing (used synonymously with 3D printing in this article) is not a new concept.
However, we are yet to see the mass adoption of 3D printing in supply chains and operations. This is largely due to its slow production speed, limited material choices, and the need for post-processing. However, developments in 3D printing offer an opportunity for organisations to adopt the technology across supply chains and operations. The technology could even have a place manufacturing end products in various industries such as aerospace, construction and fashion.
How can 3D printing transform your supply chain?
1. You can manufacture on-demand
The increasing affordability of 3D printers have made 3D printing on-demand or make-to-order products more economically viable, especially for highly customisable products. Custom implants and dental moulds are some good examples. We have also been involved in the manufacturing of ‘miniature’ figurines for tabletop boardgame designers and enthusiasts.
2. Your supply chain will be resilient to disruptions
3D printing enables local production, allowing production to be de-centralised. Each site can produce what is needed in house, reducing the dependency on parts produced by other locations and making it less vulnerable to supply chain disruptions. Businesses and communities can benefit from a de-centralised production, in some cases by the community itself. During the initial PPE shortage due to Covid-19, we helped to produce and donate hundreds of face shields assembled with polyurethane sheets to local charities and frontline workers in London.
3. You can reduce dependency on distant suppliers
Similarly, businesses can become less dependent on foreign suppliers as additive manufacturing improves the capability of businesses bringing productions locally.
A good example would be car repair shops 3D-printing parts required. Inventory management is challenging due to the large number of car parts, for which the demand is relatively low. Repair shops often order lower-volume parts from suppliers only as demand arises.
By creating local production capability of 3D printed car-parts, it can reduce the order lead-time, especially from distant suppliers. This, in turn, would reduce the need of stock buffers. The average auto repair franchise makes $1.2 million per year, with COGS covering roughly 30% of their revenue. Assume that the franchise decentralises its network into 5 local regions which yields 20% COGS reduction from inbound logistics and margin, this will give $14,400 cost savings per printer annually. Implementing a network of metal 3D printers costing $80,000 each can achieve an ROI of 26%, assuming an average machine lifespan of 7 years.
4. You can drive costs out of your business
Additive manufacturing yields very little material waste compared to traditional subtractive manufacturing as it constructs layer-by-layer. This is especially apparent when valuable materials are used, such as titanium alloys and carbon fibre composites in the aerospace industry.
It also has a high material efficiency when creating lightweight additively. These same designs would be significantly more costly to achieve with subtractive manufacturing methods. Furthermore, by enabling localised production, 3D printing can shorten supply chains and reduce transportation and logistics costs.
5. You can fix, replicate and create
When paired with 3D scanning and Computer Aided Design (CAD), additive manufacturing can create close replicas of existing objects.
Reverse engineering is especially useful in speeding up the time-to-market. The process is ideal for replicating and improving existing parts in the product development stage. Not only that, but it can also extend the usefulness of end-of-life products no longer supported by the manufacturer.
Apart from prototyping, we have also scanned, modified and printed parts for brackets and hand tools for repairing. This process proved to be functional, inexpensive and quick.
There are, however, industry challenges
There are ongoing debates on whether additive manufacturing is a sustainable and environmentally friendly practice. While it comes with the benefits of eliminating overproduction and lowering carbon emissions due to long-distance transportation, there are also environmental concerns on its harmful emissions.
Some additive manufacturing technologies involve the use of photopolymer resins which emits volatile organic compounds (VOCs) during the curing process, as well as potential soil and water pollution if the resin is disposed improperly. Direct skin contact with resins causes irritation, and inhalation of fumes can lead to respiratory issues.
Reverse engineering has also resulted in key issues on patent violation as patented inventions can be replicated without permission, which in turn lead to counterfeit products and trademark infringement. This problem has been worsened by the rise of digital manufacturing; the enforcement of IP rights is particularly difficult as design files can be easily shared online.
3D printing offers a transformative potential for supply chains by enabling on-demand manufacturing, enhancing resilience, reducing dependency on distant suppliers, driving down costs, and facilitating repairs, replication and creation of parts. These benefits streamline operations, as well as making 3D printing a valuable asset for innovation: 3D printed shoes could be tailored to the form of a customer’s feet [source], cruelty-free meat products could be 3D printed to replicate the texture and structure of actual meat products [source].
The versatility and economic benefits of 3D printing are clear, positioning it as a key technology for the future of manufacturing and supply chain management. While it is important to be mindful of environmental and intellectual property concerns, there are many ways 3D printing can transform your supply chain.
- Digital Supply Chain
