The Impact of Direct Digital Manufacturing on Supply Chains - Essay Example

The Impact of Direct Digital Manufacturing on Supply Chains Introduction Direct digital manufacturing, also referred to as rapid or additive manufacturing or simply fabbing is a recently developed manufacturing process by which physical parts can be directly created from 3D CAD files or “data using computer controlled additive and subtractive fabrication and machining techniques with minimal human intervention” (Rapid manufacturing). The history of rapid manufacturing process dates back to mid-1980s and was known as rapid prototyping since the technology had been basically developed to create prototypes or parts without the application of traditional time consuming methods. This paper will analyze how the DDM affects the nature and level of demand for logistic services and what strategy companies can frame in order to attain competitive advantages from the development of DDM. Direct Digital Manufacturing Additive manufacturing is just an extension of the process of traditional rapid prototyping and it is predicted that this technique would play a great role in logistical systems over the next few decades (3D printing). Asiabanpour, Mokhtar, and Houshmand (2008) reflect that this technique is characterized by three dimensional printing of objects, which are subsequently built up layer by layer to obtain a 3D structure (pp. 127-128). Primarily, product design details are downloaded from the internet using fabbing machines and this stored design can be customized in accordance with the tastes and specifications of the user. Although the DDM technology currently works with the manufacture of small products, it is anticipated that the size and complexity of fabbing devices would expand in order to benefit a much broader range of products and industries. Effect of DDM on logistics services However, experts argue that the DDM will extensively affect the nature and demand for logistic services. The seven principles of logistics are responsiveness, simplicity, flexibility, economy, attainability, sustainability, and survivability (Cosimo, Inc, 2007, p. D-22). While analyzing these principles on the background of additive manufacturing method, it seems that the effective application of this technique may improve the efficiency of logistic services. DDM fundamentally redefines the manufacturing process in a way the production is dispersed from factories to the location where the products are actually needed (Technology, print me a Stradivarius, 2011). Hence, typical supply chains characterized with several production and storage points can be replaced with the introduction of additive manufacturing technology, which facilitates direct delivery of the plastic and metal powders required to fabricate the products. In their book title, Hopkinson, Hague, and Dickens (2007) depict the rapid manufacturing as “an industrial revolution for the digital age”. Energy efficiency, low material waste, speed, and complex geometries are the prominent features of rapid manufacturing technology and they greatly add value to the logistical principles, particularly to flexibility, economy, attainability, and sustainability. In the opinion of Reeves (2008), the additive manufacturing technology will influence companies to establish a globally distributed supply chain that facilitates cost effective as well as low volume production. Since the direct digital manufacturing offers businesses a range of competitive benefits including environmentally sustainable operation, operational cost efficiencies, and product innovation, organisations tend to broaden the scope of their supply chain management by emphasising on logistic services. Since this technique can be effectively employed to create complex geometries without consuming much time, it would assist business houses to increase their sales volume and thereby the speed of their product delivery. As Reeves (2008) states, before the introduction of rapid manufacturing concept, manufacture of low volume and customised products on demand had been exclusively restricted to the two dimensional printing sector. Currently, firms can engage in economic assembling of products on demand at various locations near the consumption sector. In addition, the rapid manufacturing method is capable of extending its services to some other industrial manufacturing sectors including aerospace and medical supplies. In short, the emergence of direct digital manufacturing concept opened new doors to organisations; at the same time, this technology has greatly increased the demand for highly improved logistic services to effectively meet the newly evolved requirement of the supply chain management. How to take advantages of DDM? According to Excell and Nathan (2010), the DDM has a wide range of applications in variety of industries such as automotive, dental, medical, fashion, military and other industries that engage in the manufacture complex structures of small to medium size. Burton (2005) indicates that this technology is still at its initial stages of development and hence its range of utility is largely dependent on users’ knowledge of engineering to develop a prototype and effectively apply the printing equipment. Therefore, managements must develop effective knowledge regarding various processes involved in the direct digital manufacturing in order obtain extensive benefits from the application of DDM. It is advisable for organisations to appoint an experts’ team for specifically managing and monitoring different areas of the rapid manufacturing process. It has been reported that the introduction of DDM promoted quick market growth. For instance, 3D printing organisations like Sculpteo had more than 44,000 items to be 3D printed on demand. Hence, it is clear that effective management of the DDM technology would offer fruitful benefits to firms. Similarly, improvements in logistic services are strongly recommendable for companies to gain competitive advantages from additive manufacturing process. As discussed earlier, restructuring current practices in logistic services are necessary to meet the increasing needs that are emerged due to the introduction of DDM. Therefore, companies must clearly identify their logistic requirements in order to effectively extent services to the 3D printing sector. Walter, Holmstrom and Yrjola (2004) point out that since this technology is still new, employees may not be capable of understanding the technical aspects of this process. Hence, managements have to arrange special training programs for their employees. Conclusion DDM technology has higher degrees of reliability and accuracy and these features are potential enough to replace traditional manufacturing techniques in developing end user products. The DDM significantly increases the level of demand for logistic services since this technique manufactures complex products on demand. Therefore, it is highly useful and necessary to ensure faster product delivery to consumers. By restructuring the supply chain management effectively, companies can create competitive advantages from additive manufacturing application. References Asiabanpour, B, Mokhtar, A & Houshmand, M 2008, Rapid Manufacturing, Kamrani, AK & Nasr, EA (Eds), Collaborative Engineering: Theory and Practice, Springer, New York. Burton, MJ 2005, ‘Design of rapid manufacture: Developing an appropriate knowledge transfer tool for industrial designers’, Loughborough University, Viewed 04 November 2011, Cosimo, Inc 2007, Marine Corps Operations, Cosimo, Inc, New York. Excell, J & Nathan, S 24 May 2010, ‘The rise of additive manufacturing’, The Engineer, Viewed 04 November 2011, ‘Rapid manufacturing’, Viewed 04 November 2011, Reeves, P 2008, ‘How rapid manufacturing could transform supply chains’, CSCMP’s Supply Chain Quarterly, Viewed 04 November 2011, ‘3D printing: The printed world’, 10 Feb 2010, The Economist, Viewed 04 November 2011, Hopkinson, N, Hague, RJM & Dickens, PM 2006, Rapid Manufacturing: An Industrial Revolution for the Digital Age, John Wiley & Sons, USA. ‘Technology, print me a Stradivarius: How a new manufacturing technology will change the world’, 10 February 2011, The Economist, Viewed 04 November 2011, Walter, M, Holmstrom, J & Yrjola, H September 2004, ‘Rapid manufacturing and its impact on supply chain management’, Logistics Research Network Annual Conference, pp.1-12, Viewed 04 November 2011, Read More