Shoring up the Supply Chain with Additive and Distributed Manufacturing

One of the many supply chain flaws exposed by the coronavirus pandemic was the reliance on centralized production, and how the failures of a single manufacturing center could send not only ripple effects, but shockwaves down the supply chain. In theory, a more distributed approach could help mitigate these risks, but achieving a distributed manufacturing network is often an overly costly or unfeasible proposition for many companies. With the rise of additive manufacturing, also known as 3D printing, distributed production may well be within more companies’ reach. New advancements in the field are making additive manufacturing more cost effective and accessible than ever before, and future developments will only enhance the complexity of products capable of being manufactured with this technology.

Geographic Flexibility

Let’s consider some of the main supply chain issues posed by the pandemic, starting with the geographic restrictions enacted in response to the spread of the virus. In China, for example, where many of the world’s leading manufacturers are located in close proximity in dense industrial zones, rapid spread of the virus forced countless major factories to shutter overnight. Companies relying on centralized production methods, often outsourcing their products to the cost effective options provided in these industrial hubs, soon found their suppliers inoperable for the foreseeable future, and operating at significantly reduced capacity upon reopening, be it for worker or supply shortages or a continuation of protective measures. Overreliance on materials and manufacturers hailing from one region makes any company’s supply chain vulnerable. It needn’t take a pandemic to expose the pitfalls, as a natural disaster, extended labor strike, or machine failure could render a company’s single source futile in the blink of an eye.

By spreading out manufacturing locations across various areas, the risks posed by these geographically-linked issues are mitigated. If your manufacturer in China is unavailable for a period of time, you can try to temporarily increase production in your Australian facility, for example. Additive manufacturing takes this concept to the next level by allowing for greater local production. In a pandemic-like situation, in which the entire global supply chain is halted and forced to move in a stop-start motion, manufacturing products closer to your distribution centers is exceptionally valuable. Not only do you decrease the risk of factory shutdowns, but limit exposure to shipping vulnerabilities. If you produce products nearer to your distribution centers, you needn’t worry about port blockages and delays, overseas shipping dilemmas and price surges, or even quarantine periods necessitated in pandemic times. The benefits of distributed manufacturing have been made abundantly clear in recent years, yet the steep entry price of opening new facilities has prevented many companies from following this model. With additive manufacturing, that is about to change.

Cost Effectiveness

3D printing greatly lowers the barrier to entry for companies seeking to implement a distributed manufacturing process. While, as of now, additive manufacturing typically encompasses smaller batches of production, lower setup and shipping costs balance out the higher costs of less bulk-based production. With the relative ease of installation and training required for additive manufacturing, compared to the heavy time and resource investment necessary for more traditional manufacturing methods, companies can set up shop more freely, spreading out their manufacturing centers to minimize geographic risks and place production closer to their distribution centers.

Customizability

For companies that make-to-order or engineer-to-order, the benefits of additive manufacturing are even more substantial, allowing for on-demand production to satisfy order fulfillment. For customizable engineered-to-order products, additive manufacturing is especially beneficial, allowing companies to meet the specific needs of their customers without major infrastructural redesign. 3D printing allows companies to produce greater variations of products more efficiently than ever before, as design changes can be made through software programs as opposed to altering assembly lines. This gives companies the ability to continuously improve their products, tweaking designs not only at the behest of customers but also innovation and efficiency, given their ability to make changes at a low cost. This will lead to higher-quality products available on the market, and increase consumer choice.

Sustainability

By placing manufacturing centers closer to distribution facilities, the environmental impact of shipping is greatly reduced. If a company based in, say, Arizona can manufacture their products in and around their Phoenix area distribution center instead of in Vietnam, the carbon emissions resulting from the world-spanning transportation previously necessary will decrease dramatically. Shorter shipping distances also enable the use of new transportation methods. For facilities located near densely populated urban areas with a substantial customer base, drone delivery systems can replace more carbon emission inefficient shipping methods. And we’ve only considered the shipping environmental impacts, not to mention the less wasteful and resource-intensive demands of additive manufacturing. By implementing additive manufacturing at key points in the supply chain, the environmental and economic benefits can be felt well downstream.