It is easy to think that modern supply chains are as effective as they have been thinking about how to use the resources of so many countries and companies through instant messaging to find all possible solutions to any given problem. The global supply chain is undoubtedly more complex than ever. However, complexity is not absolutely good. It comes with trade-offs.
In many ways, today’s supply chain is very effective, depending on the definition of effective use. If a manufacturer has multiple suppliers of specific components, then if their preferred supplier is suddenly unable to provide the component, it has some flexibility. But sometimes the supply chain can become so large and complex that manufacturers cannot fully trace the source of raw materials. If all suppliers of the same component purchase raw materials from the same supplier, and the supplier is closed for some reason, then all manufacturing of the component will stop due to a single knot in the supply chain. This is the situation where many manufacturers (especially manufacturers of medical equipment) are currently in the COVID-19 pandemic.
We have broadly covered the enthusiastic response of the 3D printing community to help cope with COVID-19, but let us take a closer look at the situation of the supply chain and then study how AM can reduce its sensitivity to interruptions. The combination of technological, economic, and socio-political changes that have occurred in the past few decades has greatly expanded the scope of supply chains and manufacturing. The Internet immediately connects consumers and sellers, global transportation routes will be rare, and local materials will be shipped to all corners of the world, and advanced analysis technology enables suppliers to predict demand and adjust inventory accordingly.
At first glance, it seems that manufacturers have more options than ever to avoid interruptions, but with the advent of international trade agreements, the differences in labor costs between countries have become larger and larger, leading to many Western countries (higher labor costs) will Outsourcing manufacturing and assembly to eastern countries (lower labor costs). This means that a large number of small consumer products are being manufactured far away from the end-user, which means that the delivery of these goods will take a lot of time and logistics costs. Most people will not define it as an efficient system, but if you measure the efficiency by manufacturing plus the total cost of transportation, then let China manufacture our smartphone is the most effective option, because even if additional transportation is added Cost, it is still cheaper than manufacturing them in Western countries.
Until China’s factories were closed due to the spread of disease. Or the freight company prevents the shipping container from leaving the country for the same reason. This epidemic may seem abnormal, but there are many events that can severely disrupt a seemingly strong supply chain. According to a survey conducted by Supply Chain Insights LLC in 2018, from 2013 to 2018, the three major events affecting the supply chain were cyber attacks, slower development of ports on the West Coast, and Hurricane Harvey. That is technical reasons, economic reasons, and natural events. As the supply chain becomes larger and more complex, more incidents that cause problems will occur. Other significant events include:
- Changes in trade policies
- Wars
- Government shutdowns
- Shipping accidents and piracy
- Currency fluctuations
- Other natural events like earthquakes, drought, wildfires, flooding, and blizzards
Another growing trend to increase susceptibility to outages is “just in time” manufacturing. By using the advanced analysis methods mentioned earlier, the inventory accurately matches the expected demand. When everything goes well, it can save the supplier cash, but when things do n’t go according to plan, it can cause real headaches. When the supply chain is large and streamlined, it is difficult for traditional manufacturing to meet the sudden rise in demand. This is not as simple as requiring other manufacturers to intervene and meet unmet needs, because injection and casting molds require a lot of time to manufacture, ship, install, and train operators on how to use them. In addition, they are very expensive. In general, it is only feasible to exceed the profit and loss “breakeven” point when the mold is made once for a single manufacturer. Assuming an increase in demand, manufacturing a brand-new set of molds may put the supplier in a loss for several years to accommodate the increase in output. Otherwise, the supplier will suffer losses on these molds. This is one of the many risks that suppliers and manufacturers must consider when dealing with supply chain disruptions.
In 2016, the US Department of Commerce released a report detailing vulnerabilities in the aerospace titanium global supply chain. Almost all titanium products come from supply chains originating in China, Russia and Japan, and almost a quarter of products are classified as “the only source” because there is no equivalent supplier. Although the time required for increased processing and forging manufacturing is 15-16 weeks, which are the two most common methods of manufacturing titanium parts, suppliers only stock 5-16 weeks of product inventory. This is an example of a supply chain that is sensitive to unexpected disruptions.
While as clumsy and slow as conventional manufacturing, here is how lightweight 3D printing is. In order to produce components with multiple different parts through injection molding, specific fixtures and molds must be used to manufacture the mold for the factory to manufacture each part, and then the factory is locked in this configuration until the end of production. However, a 3D printer can produce each of these parts and still be able to manufacture other parts with zero tool changes. If multiple units are needed, it is as simple as adding more printers because they will not be eliminated after a specific production run; they can easily transition to the next product. Because of the digital inventory that accompanies 3D printing, it can solve the interruption problem more effectively. Suppose a factory operating a 3D printer is powered off, which is common in manufacturing. Their production manager can contact a nearby 3D printing service, send them digital design files over the Internet, and resume production within a few hours. All other forms of manufacturing are impossible. Here are some other ways AM can make the supply chain more resilient:
- Locally manufactured: Making goods closer to the end-user means there’s less chance they can get lost or stuck in transit, and they get there faster.
- Less waste: The fact that 3D printing wastes less material means manufacturers have to order less raw materials and are thus less sensitive to events that affect the distribution of raw materials.
- Flexibility: Production can be quickly changed with 3D printers, from different parts to different colors and materials. To increase production, just add more printers.
- Portability: Most 3D printers can be shipped and don’t require much space. Fleets of 3D printers can be rapidly deployed in temporary structures to deal with local crises and then packed up afterward to be of use elsewhere.
- Ease of use: 3D printers are a technological wonder that simplifies manufacturing to the literal push of a button. Teaching someone how to operate a 3D printer is not difficult, and I’m speaking from experience.
For all these reasons and more, 3D printing is more responsive than conventional manufacturing, whether it is to normal market demand changes or to global supply chain disruptions (such as our current challenges). Companies that want to use just-in-time manufacturing will also use 3D printing. If manufacturers do not have sufficient reasons to add additive manufacturing to their production lines, then this epidemic may highlight the lack of responsiveness relying on traditional manufacturing equipment and supply chains, and will not help them enter Industry 4.0.