Digital manufacturing-driven transformations of service supply chains for complex products

Abstract

Purpose – The purpose of this paper is to explore the forms that combinations of digital manufacturing, logistics and equipment use are likely to take and how these novel combinations may affect the relationship among logistics service providers (LSPs), users and manufacturers of equipment. Design/methodology/approach – Brian Arthur’s theory of combinatorial technological evolution is applied to examine possible digital manufacturing-driven transformations. The F-18 Super Hornet is used as an illustrative example of a service supply chain for a complex product. Findings – The introduction of digital manufacturing will likely result in hybrid solutions, combining conventional logistics, digital manufacturing and user operations. Direct benefits can be identified in the forms of life cycle extension and the increased availability of parts in challenging locations. Furthermore, there are also opportunities for both equipment manufacturers and LSPs to adopt new roles, thereby supporting the efficient and sustainable use of digital manufacturing. Research limitations/implications – The phenomenon of digital manufacturing-driven transformations of service supply chains for complex product does not yet fully exist in the real world, and its study requires cross-disciplinary collaboration. Thus, the implication for research is to use a design science approach for early-stage explorative research on the form and function of novel combinations. Practical implications – Digital manufacturing as a general-purpose technology gives LSPs an opportunity to consolidate demand from initial users and incrementally deploy capacity closer to new users. Reengineering the products that a manufacture currently uses is needed to increase the utilization of digital manufacturing. Originality/value – The authors outline a typology of digital manufacturing-driven transformations and identify propositions to be explored in further research and practice.

The 3D printing order: variability, supercenters and supply chain reconfigurations

“…The popular press (Anderson 2012;Markillie 2012;Winnan 2012) optimistically conceives of 3D printing as a new "industrial revolution," a "gold rush" that will dramatically change supply chains, firm strategies, competition, and industrial geographies. In contrast, the academic literature largely confines 3D printing to specialized situations (Holmström et al 2010;Pérès & Noyes 2006), and particular and complex products (Holmström & Partanen 2014). Technological limitations, high material costs, lack of safety and quality standards, and high energy costs (Berman 2012) further confine 3D printing applicability.…”

“…3D printing also reduces: inventory holding, part obsolescence and shortages (Holmström & Partanen 2014), packing and packaging (Berman 2012), assembly work Tuck, Hauge & Burns 2007), the need to develop production processes in the product development stage (Gibson, Rosen & Stucker 2010), setup costs, and changeover time (Tuck, Hauge & Burns 2007). Furthermore, for complex parts that require multiple components, tooling and pre-chain setup, energy use may be lower than for injection molding (Chen et al 2015).…”

“…Economies of scale and scope provide the economic rationale for this divide. 3D printing creates the conditions to substantially shrink supply chain distance (Anderson 2012;Holmström & Partanen 2014). At the extreme, in the case of home 3D printing, supply and demand co-occur.…”

“…Contemporary literature focuses on the applicability of 3D printing to spare parts (Holmström et al 2010;Holmström & Partanen 2014;Pérès & Noyes 2006), products demanded by systems that are difficult to access due to distance (e.g., the International space station), time (obsolete parts), danger, (disaster struck areas) (Pérès & Noyes 2006) and complex products (Holmström & Partanen 2014;Gress & Kalafsky 2015). Although 3D…”

“…Direct Digital Manufacturing (DDM) 1 -3D printing -may become a general purpose technology (Holmström & Partanen 2014) with wide-ranging implications for: supply chains (Eyers & Potter 2015;Ruffo, Tuck & Hague 2007;Holmström & Partanen 2014), market structure , sustainability (Chen et al 2015), and production (Markillie 2012). "3D printing or additive manufacturing is a process of making three dimensional solid objects from a digital file.…”