3D Printing is Ready to Transform Manufacturing Supply Chain
By: Joshua Hirshman
Tags: Digital Transformation, Manufacturing, Supply Chain, 3D Printing, Technology Trends

Creator: MORENO SOPPELSA

Despite having captured the imaginations of technology enthusiasts and business strategists since the mid-1980s, 3D printing still isn’t the industry disrupting technology it has the promise to be. Much of the technology’s failure to launch has been due to slow printing speeds, lackluster quality, traceability issues, lack of talent, the high price of the most disruptive types of 3D printers, and the perception that it is little more than a hobby and prototyping tool. With the operating model transformation brought on by the Covid pandemic, things might be ready to change. Improvements to printing speeds and quality, the ascent of AI powered design tools, widespread post-pandemic digital adoption, and pressures to shorten and simplify the supply chain, more widespread adoption may be on the horizon. Now is a good time to start changing how manufacturing leaders view 3D printing and think about how it can transform their operating models.

Most western manufacturers have been dependent on low-cost overseas suppliers for items such as subcomponents, spare parts, jigs, tools, and fixtures for decades. The familiar low-cost country sourcing model comes with long lead times, little design flexibility and requires manufacturers to carry bulky inventory. On top of being a ridged and overly complicated model, companies are forced to absorb the cost of transportation and supplier markups. By adopting modern industrial 3D printing (in plastic and metals) many formerly sourced products can be produced in-house while still reducing costs and inventory. The value is a much simpler, cheaper, and agile supply chain.

There is already plenty of evidence of what the benefits might look like from industry users. Limited adoption and a number of recent proof-of-concepts have demonstrated its ability to reduce costs by up to 90% and deliver parts up to 48x faster for many tooling items, spare parts, and end-user components. Adoption also opens the door to a wide range of strategic benefits such as mass customization, on-demand manufacturing, rapid design iteration, and reduced administrative effort for sourcing, receiving and invoice handling.

Below we’ll look at a few ways industrial 3D printing can benefit manufacturers and list some potential use cases for consideration.

BENEFITS OF 3D PRINTING IN MANUFACTURING

Low-cost low volume production

3D printing is optimal for short production runs where a small number of specialized components or spare parts are needed. Manufacturers can produce the exact number of parts needed, with the exact amount of material required, from a multi-use inventory of raw material on site.

Faster delivery

Printing parts on-site can produce ready to use products in a matter of hours rather than days or longer when relying on a 3rd part supplier. Procurement action, supplier response, shipping, and receiving processes are all eliminated for all applicable parts.

Design flexibility

3D printed products require no special tooling. Designs can be iterated after each item is produced and the 3D printer will simply apply the changes to the next item. This allows improvements to be implemented almost immediately. AI powered ‘generative design’ software allows engineers to quickly produce new designs within whatever parameters they set, and even to combine subassemblies into single parts.

Mass customization

Design flexibility opens the possibility of offering customers highly customized products. This could be a differentiating capability for many customers. This also allows for much faster and customized production of some components for aftermarket sale, especially on low volume designs.

Lower inventory

Items that are appropriate for 3D printing are typically small but complex and take up a lot of space for their weight. ‘On-demand manufacturing’ with 3D printing allows users to only stock raw materials, while the product inventory exists as digital files. This can reduce warehouse space, loss due to damage, and handling needs.

Reduced administrative effort

Items produced in-house do not require administrative efforts such as sourcing capable suppliers, issuing purchase orders, warehouse receiving, and do not result in invoices which require additional back-office effort. These benefits will be most realized for highly customized items which typically require a lot of communication with suppliers.

CURRENT AND POTENTIAL USE CASES

3D printing is best suited for tooling needs, components in small to medium size production runs, and spare parts. Various printing technologies can print in metal or plastic, but the size of the machines means that the items must be relatively small. Common metals that are used include stainless steel, aluminum, titanium, cobalt chrome, and nickel alloys. You can consider some more details and constraints around metal printing here. Below are a few use cases for consideration:

· Tooling such as molds and inserts

· Rigid housings

· Ductwork

· Heat exchangers and heatsinks

· Spare parts

3D printing will become more and more commonplace as a manufacturing method in the coming years. As the technology gains wider adoption and improves, more products will fall into its purview. Users will benefit by shortening and simplifying their supply chains. Customers will benefit from much more rapid innovation and previously impossible levels of customization. At a higher level, 3D printing is part of a larger trend of AI fueled automated manufacturing, distributed production closer to the place of use, and mass customization. The future will be interesting.