Economies of collaboration in build‐to‐model operations

Abstract

The direct‐from‐model and tool‐less manufacturing process of 3D printing (3DP) embodies a general‐purpose technology, facilitating capacity sharing and outsourcing. Starting from a case study of a 3DP company (Shapeways) and a new market entrant (Panalpina), we develop dynamic practices for partial outsourcing in build‐to‐model manufacturing. We propose a new outsourcing scheme, bidirectional partial outsourcing (BPO), where 3D printers share capacity by alternating between the role of outsourcer and subcontractor based on need. Coupled with order book smoothing (OBS), where orders are released gradually to production, this provides 3D printers with two distinct ways to manage demand variability. By combining demand and cost field data with an analytical model, we find that BPO improves 3DP cost efficiency and delivery performance as the number of 3DP firms in the network increases. OBS is sufficient for an established 3D printer when alternatives to in‐house manufacturing are few, or of limited capacity. Nevertheless, OBS comes at the cost of reduced responsiveness, whereas BPO shifts the cost and delivery performance frontier. Our analysis shows how BPO combined with OBS makes 3DP companies more resilient to downward movements in both demand and price levels.

Business Models Amid Changes in Regulation and Environment: The Case of Finland–Russia

“…The survey allowed the respondents to write free-form comments about subcontracting, and some of the responses pinpointed that companies offer subcontracting back and forth to each other, whenever the need arises. This type of behavior has been observed by Hedenstierna et al [48] in 3-D printing operations in Europe. Moreover, some of the interviewees indicated their need for more subcontractors to help them serve their customers in a more flexible manner.…”

“…Firstly, the innovative subcontracting-based model in the context of this research refers to a model where the focal company offers subcontracting services on business sections that have not been externalized by the principal companies before. Furthermore, this type of model would enable lateral collaboration between companies to offer subcontracting services to each other, e.g., by order book smoothing as described by Hedenstierna et al [48]. For example, the gradually liberated competition on railway traffic could offer opportunities for this type of business activities.…”

The digitalization of operations and supply chain management: Theoretical and methodological implications

“…A central thread of the articles in the special issue (SI) is the bridging of physical and digital spheres that derives from the encapsulation of product design and production‐process information into unique digital artifacts: “digital encapsulation.” Digital encapsulation is addressed in all the SI articles but is particularly salient in Friesike et al () and Hedenstierna et al (). These articles explore the use of digitally encapsulated artifacts to revisit established design and manufacturing processes, and provide examples of how digital encapsulation can open new avenues for theory elaboration in OSCM.…”

“…The article “Economies of collaboration in build‐to‐model operations” by Hedenstierna et al () examines the relationship between Shapeways, a provider of additive manufacturing services, and Panalpina, a logistics service provider. The article uses an analytical‐modeling approach to compare a new build‐to‐model operation to conventional make to stock and build‐to‐order operations.…”

“…Friesike, Flath, Wirth, and Thiesse () investigate the emerging practice of design remixing in AM, exploring how a more fluid boundary between product design and manufacturing processes shifts economies of scale from manufacturing to design. Hedenstierna et al () propose a novel mode of operation for additive manufacturing that facilitates capacity pooling in a network of general‐purpose manufacturers. Roscoe, Cousins, and Handfield () address the challenges of aligning process and organizational architectures as AM capabilities are developed at an aerospace company.…”