3D printing stabilizes global chains and improves its efficiency.
AT Kearney 17. Global management consulting firm with offices in more than 40 countries worldwide, consistently ranked among the top consulting firms. AT Kearney. “3D Printing: ensuring manufacturing leadership in the 21st century.” https://saratech.com/wp-content/uploads/2020/03/HP-3D-Printing_-ensuring-manufacturing-leadership-in-the-21st-century_SARATECH.pdf
3D printing will fundamentally change today’s complex supply chain, moving manufacturing closer to consumption. The massive supply chain advantages of 3D printing coupled with consumer trends will enable manufacturers to cost effectively serve consumers, closer to where they live.
3D printing enables cost-effective customization. Close interaction with the end customer will be necessary to customize products to meet their needs. Locating manufacturing closer to consumers will allow them to iterate towards the end part; whereas a global supply chain would have large transportation costs that would minimize the ability to test out customizations. The customization needs will be different based on the consumer population; the product for the US consumer will be drastically differentiated from the product for the consumer in India.
3D printing increases go-to-market speed. The time and effort to build complex global supply chains will not keep pace with the increased cycle time of new product launches. The supply base will need to be closer to manufacturing, and various steps of manufacturing will be closer together.
For manufacturers, having 3D printers and raw materials will enable drastic reduction in inventory. Any needed part can be made on demand without waiting for transport time; this efficiency is only enabled if manufacturing is located close to where the part is needed.
3D printing is also reducing the barrier to entry in manufacturing and production of goods, driving a democratization of manufacturing that will fundamentally change entire value chains, from complex global supply to local ecosystems.
The shift closer to consumption and to shorten the supply base will redistribute manufacturing across the globe, but where it will go depends on many factors, including ecosystem development, economic environment, ongoing consumer trends, and, most importantly, which countries act quickly to lead in 3D print manufacturing.