3D printing brings unexpected changes to the supply chain

Today, the craze for 3D printing applications is sweeping the globe. We can see 3D printing in many industries, such as 3D printed aircraft and auto parts in the manufacturing industry, 3D structural models used in plastic surgery, which is no doubt that 3D printing has quietly penetrated into all walks of life. .

Throughout the supply chain, from manufacturing to logistics and warehousing, 3D printing is increasingly recognized, accepted and applied. Many world-renowned car brands have used 3D printing technology to accelerate the research and development and production of new products in their own supply chain, and more actively respond to changes in market demand.

Although 3D printing can never be compared to the economies of scale of traditional mass production supply chains, 3D printing technology is becoming more powerful and reliable as time goes by, and it complements the supply chain. Deeply promote the transformation and upgrading of the supply chain.

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According to Gartner, 38% of supply chain managers already use 3D printing technology, and 47% of supply chain managers plan to start using 3D printing technology in the next two years. According to this calculation, after two years, 17 out of every 20 supply chain professionals will use 3D printing technology in their distribution network.

Today, 3D printing technology is playing an indispensable role in the supply chain with the following six advantages.

I. Avoiding the negative impact of outsourcing production

In the traditional supply chain model, companies often need to purchase raw materials from external suppliers, then mass-produce them in the factory, and then distribute them to customers through the warehousing and distribution network. Therefore, a large amount of capital of the company is used in plant construction, equipment purchase and staffing, which makes the entire supply chain complicated and increases the difficulty of enterprise management.

For economic reasons, companies have been outsourcing supply chains to companies that use traditional manufacturing methods for decades. However, international freight costs are increasing year by year, trade tariff disputes are intensifying, and the risks and costs of international logistics are also rising. Outsourcing efforts have become more complicated by the time it takes for companies to negotiate with multiple suppliers and independent contractors, as well as communication issues and language differences at different time intervals. The outsourced supply chain has become more fragmented than ever before, and it has begun to lose its former advantage.

The end-to-end process brought about by 3D printing is a mature production mode and a key advantage of 3D printing. Through 3D printing technology, companies can self-produce the originally outsourced supply chain through simple and professional operating software. For example, some companies make prototypes or even small batches of production through internal 3D printing equipment, which can avoid the risk of intellectual property leakage caused by the outsourcing of prototype production.

Second, save time and money by simplifying the supply chain

Compared to outsourcing, 3D printing typically has a high return on investment, and simplifying the supply chain can save costs in many other ways.

1. Transportation cost

The logistics costs of transporting spare parts or low turnover parts from overseas are very high, and 3D printing can help solve this problem. As long as you install a 3D printer, you can produce parts on demand. A study shows that this can help companies save up to 85% on transportation costs.

2, storage

Excess inventory and low turnover parts account for a large amount of storage space. Related studies have also shown that companies can save 17% in cost by reducing the inventory of finished products. According to a report released by DHL, 3D printing spare parts can account for more than 20% of the unused or surplus stock of a common company. Many automakers need to stock 7-10 years of spare parts for every car they produce. Thanks to the advantages of 3D printing, the factory can achieve on-demand production without the need to prepare stock in advance.

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3. Increase profit margin

According to the US Bureau of Labor Statistics' public data and manufacturing economic data, the US manufacturing operating cost is $4,258,341 per minute and the profit margin is only $22,480 per minute.

Therefore, if 3D printing can shorten the production time, even for one minute, one hour, one week or one month, it can have a positive impact on large industries. While the use of 3D printing to produce a single prototype part within an enterprise does not seem to save a lot of money, the time or money savings for those large manufacturers will quickly overlap.

4, reduce material waste

3D printing produces parts in a layered manner. Unlike the manufacturing methods of reduction materials such as CNC machining, additive manufacturing only produces consumables when needed. 3D printing reduces the waste by producing accurate parts according to the manufacturer's specifications and producing parts or tools as needed.

5. Reduce manpower requirements

For US companies, the labor costs overseas are lower than those of the US. As a result, many manufacturers outsource labor, but if you use 3D printing, you can reduce your business's reliance on labor outsourcing. Thanks to the increased runtime and reliability of 3D printers, network-initiated machines can be controlled with intuitive printer management software, and a trained worker can control the production of small spare parts on the workstation via 3D printing. .

Third, make the entire value chain more agile

While the traditional supply chain is increasing in complexity, its responsiveness has rarely improved. 3D printing shortens manufacturing cycles and reduces overseas transportation activities, eliminating the need for lead time. The 3D printing time of a part depends on the complexity of the part, in hours rather than weeks. With multiple machines you can easily increase production and meet your needs.

The infinite flexibility and responsiveness of 3D printing can help companies gain a competitive advantage. As the supply chain continues to transform into this modern model, companies can increase efficiency in other areas.

Fourth, make full use of the unique product performance of 3D printing

3D printing offers significant advantages for small batch manufacturing – breaking the limits of geometry. Traditional production methods such as injection molding follow the principle of “manufacturing-oriented design”, which limits the shape of the product. And 3D printing can improve the structural performance, save materials, and shorten the design-to-manufacturing cycle by generating design patterns and designing irregular geometries more efficiently.

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V. Differentiating through on-demand production of parts

Like Uber, which disrupts the taxi industry, and Airbnb, which disrupts the hospitality industry, 3D printing can continue to reinforce consumer influence on the supply chain. In the context of digitizing the “demand economy”, 3D printing and interconnect manufacturing will produce perfect synergies.

On-demand production of parts helps to create a higher level of finished product or “quasi-finished product” (eg garments with individualized printing accessories, custom-designed mobile phone cases, ergonomically designed for workers) tool).

For traditional supply chains, the on-demand production of 3D printing guarantees product availability. Fundamentally, 3D printers can replace "instant" inventory. Virtual warehousing has now become a reality, digitally sending 3D model files to the nearest 3D printer.

Sixth, improve customer satisfaction

In the manufacturing industry, competition among enterprises is often a competition between supply chains. Embedding 3D printing into the supply chain can improve customer satisfaction and loyalty while maintaining the best service levels. For a company, through the improvement of the supply chain, it can achieve faster response time for customers and adaptability to meet diverse needs, thus providing users with a better consumer experience and making the company stand out in the fierce competition.

We have already seen that due to the popularity of mobile phones, developing countries are phasing out fixed telephones. People always prefer technologies that are more flexible and require less infrastructure. With the popularity of Industry 4.0 technology, 3D printing will revolutionize the current complex traditional supply chain model, bringing unexpected changes to the entire industry. Ultimaker will also work closely with leading companies through business development to help companies improve their supply chains and accelerate the transformation of local digital manufacturing with 3D printing technology.