Research Paper on Effects Of 3D Printing Technology on Logistics Within the Supply Chain

Introduction

The current demand economy is disrupting almost every sector, a situation which is prompting people in the manufacturing business to become more innovative and adopt various practices. Approximately ten years ago, customers all over the world would accept waiting for their goods to be delivered but today, organizations like Amazon and Alibaba have been infused. Customers are now able to make their decisions regarding purchases based on how quickly they will receive their products. In the effort to be competitive in the current market, more companies are resolving to use 3D printing to produce or create and distribute their products quickly to consumers globally (Fosso, 2017 p.1). While companies can save on costs by manufacturing their products in specific locations, managing a universal logistics network is difficult, and there is the continued rise in transportation costs. Due to such factors, the 3D printing mechanism has become crucial, and the services are expected to grow to $20.2 by the year 2019. In the past, supply chains used to follow the SCOR model which represents plan, source, make, deliver, and return.

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However, there is now a fundamental shift in the supply chains, and the model is primarily concerned about the needs of consumers. Today's supply chains are faced with issues whereby a product takes months to be designed, sourced, and assembled into the final product. Furthermore, a lot of time is wasted during various negotiations with suppliers. However, all these activities are regarded worthwhile due to the competitive advantage around the world. However, with the 3D printing technology, organizations will be able to manufacture their products quickly, and the process will require fewer negotiations and planning (Fosso, 2017 p.3). The primary goal of this paper is to comprehensively discuss the effects of 3D printing on logistics within the supply chain.

One of the most significant impacts of 3D printing technology is that the customer will be put in charge of the supply chain, although most companies are not ready for this type of change. In the traditional supply chain model, the organization controls all the activities involved in the supply chain, for instance, new product development, sources of materials, overseeing the manufacturing process, and foreseeing the delivery of goods to retailers. In this case, the customer only gets the finished product after all the work is completed and before purchasing, consumers usually make comparisons among the various products being sold. In the 3D printing technology, there is a highly responsive supply chain which is flexible for consumers (Schubert, Van Langeveld & Donoso, 2014 p.159). The first step is for the consumer to order a particular product, after which a 3D printing shop produces the final product and makes deliveries through drones. Instead of following the old model of planning, sourcing, creating, delivering, and returning, using the 3D technology will enable customers to begin with ordering, making, delivering, and returning.

Furthermore, the development of 3D printing technology will lead to the rise and advancement of robots especially delivery/return drones. Some of the most significant advantages of using robots in the supply chain are the automation of repetitive and detail-oriented duties. Furthermore, there will be a drastic reduction in costs since drones require less infrastructure. The current supply chain model requires a driver who operates with a truck. Therefore, the supply chain requires greater economies of scale since both the driver and the truck must be financed.

On the other hand, drones can made in sizes just big enough to transport a package. However small trucks are, they will still require highways, but drones can be small and airborne therefore will aid in reducing traffic on the roads, will make quicker deliveries, and are less expensive to maintain. Moreover, distribution to customers will be direct instead of the usual deliveries through a physical address, therefore, enhancing convenience. As 3D printers become more affordable and available to the public in different parts of the world, home delivery would increase. However, a new sector in the logistics section will have to be developed to deal with the storage and movement of raw materials to the printers.

The emergence and growth of the 3D printing technology will have a vast impact on the distribution centers, and the transformation will be significant. For instance, a new dimension will be added to significantly favor retailers who are currently faced with increasing demands for customization of various products (Schubert, Van Langeveld & Donoso, 2014 p.160). On this note, retailers will make use of the distribution centers to customize customer goods with unique specifications as desired by consumers. One of the reasons why the distribution centers will be conducive for the technology is due to their flexibility as they can be coupled with an organization's storage, packaging, and transportation processes. The shift to production of goods to distribution centers instead of in manufacturing factory may be regarded as a new concept, but it is practical and has been used before in supply chain. For instance, the Dell computer company incorporated the method by having custom made computers to fit the consumers' preferences in their warehouses rather than in the manufacturing factories.

The two primary microeconomic components that will accelerate the use of 3D printing technology in distribution centers and make unique products include mass customization and e-commerce. However, the DC will have to figure out the tie required to customize products and increase efficiency in the process. Automated storage will be crucial in the effort to ensure that customer delivery demands can be met on time, which will be a strategic advantage when customer delivery expectations are met. The distribution centers will also require software rich in an algorithm with fast throughput capabilities and combine several products to a single shipment to enhance the speedier delivery of goods to customers. In addition to their normal functions, the DC will now be involved in 3D printing, picking, packaging, and shipping operations.

One of the most significant implications of the 3D printing technology is the emergence of decentralized manufacturing in the effort to offer greater proximity to consumers (Schubert, Van Langeveld & Donoso, 2014 p.161). To enhance the customers' responsiveness to market needs, manufacturing industries will be forced to cut out intermediaries who mostly market and transport products to retailers. The reason behind the adjustment is that the new technology will produce designs that can travel digitally across the world, and this trend will replace the current means of movement of materials. The exact locations of 3D printers may vary and may also be established at the consumers' homes or other areas that are accessible, flexible and responsive with a potential to thrive. Furthermore, when the printers are close to the consumers, there will be a decrease in inventories and distribution between the companies and the end users. A shift will be observed from the side of the current manufacturer-consumer distribution to that of the supplier of raw materials- manufacturer.

However, even with the technology, raw materials will still be required in the production process. With the traditional models, raw materials are delivered in bulk, and minimal packaging is done. Therefore, there is less tonne-km of freight movements. Production at home and mini-factories using 3D printers will lead to short-distance deliveries between the factories and the consumers. The impact of the technology on logistics within the supply chain will have a significant effect on the environment since there will be fewer emissions and oil use which lead to pollution. Moreover, long-distance transportation of goods will be minimized therefore leading to fewer emissions. Furthermore, traffic safety and accessibility of goods and products to customers will be enhanced.

There are two models involves here which include the Transport Policy and the SPITS model. The TPM describes the accessibility of the products and environmental safety. The model explains that environmental protection is directly proportional to the transport volumes and the distribution of traffic over a specified period and space. Moreover, the distance over which goods are transported to customers influence the costs and the time taken to make deliveries. On the other hand, the SPITS model deals with the functionality of how production, inventories, sales, and transport interact and affect each other. If the stocks are small with high prices, there will be a corresponding increase in transportation costs as compares to larger inventories. Using 3D printing technology, the transportation costs will be a primary consideration. Local transport will be the most essential and will be organized efficiently. There may be distribution facilities in the urban centers or at the regional levels where deliveries to the final consumers will take place. However, it is uncertain whether the costs will be higher or lower as compared to the current trends. One of the factors that will determine the prices is how easy or difficult it will be to move raw materials to the printing companies. Due to the proximity of 3D printing companies to customers, people will shift from spending money during travelling and shopping to performing other activities.

However, even with the many advantages of technology over the current supply chain model regarding logistics, there are various limitations of 3D printing. First, the technology only works when customization of products is crucial for instance, in the healthcare industry, 3D printing is used to print customized artificial joints and dental crowns. However, most of the manufactured parts in companies do not require customization yet they are standard. The above explanation is to mean that the 3D printing technology is not competitive when customization is not essential. Moreover, the printing costs per part are highly sensitive, therefore, increasing the economies of scale.

Furthermore, labor costs remain. It is important to note that the technology does not occur after touching a button. Instead, there is pre and post-processing, a procedure that requires a lot of labor costs (Sindi & Roe, 2017 p.16). Although the technology has a lot of potentials, it is unlikely to replace the traditional manufacturing and transportation process. Instead, it could be used as a complementary tool in its job to exploit new capabilities. It may take a long time for the technology to be adopted by most companies due to various factors such as restrictions on material and lack of full knowledge.

One People in the logistics sector will only be allowed to store and print data models if they receive consent and are trusted by the manufacturers. The most certain thing in future is that the value of all the products involved in the technology will be kept in digital files. Therefore, manufacturers will be forced to protect their property through the insertion of copy protection and also through the assignment of licensing rights. Several other limitations to be compensated include durability of the printed materials, the time the process takes, the price of raw materials required, and the availability of printing components (Sindi & Roe, 2017 p.10). At the moment, the 3D printing technology is not yet conducive for the manufacturing process since the cost per unit production is higher than the usu...