3d printing goes mainstream

As my readers know I have been talking about 3D printing for a long time and have been theorizing and brainstorming how this will impact manufacturing, supply chain and the overall method of acquiring goods.  From one of my first posts back in 2012 titled "Don't Reduce Costs - Eliminate Them" through the many others I really believe this is a major change in how goods will get to market.

And, of course, when we were first talking about this topic it appeared to many to be "Star Wars" type conversation but I will tell you it appears to be almost mainstream now.  Many at the recent Council of Supply Chain Management Professionals (CSCMP) Annual Global Conference in Denver were talking about it.  There was even a display!

Now the question is not whether the technology will exist or even if it will be affordable but rather what are the innovative and exciting ways it can be applied.  Unfortunately, the press is all over the fact that people are making gun parts with it.  But here are some revolutionary ways this can be applied to the supply chain:

1. Development cycle times cut dramatically:  Imagine when you can "print" prototype parts immediately and on demand as you build prototype products?  The idea of rapid prototyping  really becomes a reality and this technology drives this.  So, supply chains have to be ready for rapid deployment of new products.  Where supply chains might have had 3-5 years to plan and get ready for a new product to flow, they many now only have 6 months.  The "bottleneck" in new product development may have just shifted. 
2. Batch Sizes decrease to just about 1:  The bane of supply chains is when you can get to 1x1 or batch sizes of one.  By nature, supply chains like huge batch sizes as this helps:
• Inventory
• Procurement
• Shipping (Full shipments)
• Receiving
• Change overs in plants
• Tooling and machinery
Now the question is how will supply chains adapt to true batch sizes of one.  "Make on demand"  will be a reality and people need to be ready to deal with it. 
3. Really small shipments:  People have always talked about the "push - pull" between reducing logistics costs by increasing shipment size (full truckloads - fullest the furthest) and the flexibility and agility of small shipments.  Most want both.  3D printing will bring a lot more demand on smaller shipments and even shipments of "one".  This will really benefit companies such as UPS and FEDEX at the expense of truckload and intermodal.  

So, the conversation has moved from "Can that really be done" to "Looks like it can be done" to "Yes, it absolutely can be done now how do we leverage and exploit the new technology. 

There are a lot more and I look forward to engaging on the other ideas which will develop.  I look forward to any comments you may have.  

Why I Thought FEDEX Was Best For My 3D Printing Model

I received a lot of comments about my post yesterday concerning 3D printing and how I think FEDEX is really set up to exploit this opportunity.  Many of the comments pointed out there are other similar companies to FEDEX (such as DHL) who could do the final mile delivery.  However, I have not found the discussion compelling as none of them possess the extensive storefronts which are set up as printers already.

Yes, UPS purchased Mailboxes etc. to try to do something similar however there is a big difference.  The FEDEX Office (formerly Kinkos) locations are set up to print and produce where the UPS offices are essentially private post offices.  The keys to being able to exploit the advent of 3D printing are:

1. Locations which are local and already established to do the printing.
2. A brand which is already very trusted.
3. A process which people are already familiar with such as sending your documents for printing. 
4. An integrated final mile delivery network to do the final delivery of the "printed" material. 

Think of the FEDEX office location as the "transporter room" in the enterprise for Star Trek.  In the United States, no one has such an extensive and integrated network.

I have no idea if FEDEX is thinking of this however my speculation is they are keeping a good eye on the developments. 

More Impact of 3D Printing - Nokia Gets in The Game

I have written about 3D printing many times and its impact on the transportation industry (read:  Soon a lot less will need to be transported).  Of course, this is a way away and most people I talk to aren't overly worried about it.  "Not in my lifetime" is what I hear most.  This reminds me of the discussions people had in the '80s when we said email will take over communications.  And, we all know what happened there.

Now we see Nokia is issuing standards so people can print their own covers using 3D printers.  This has massive implications.  First, a lot less product will need to be shipped.  Yes, I know these are small but soon it will be bigger and bigger product.  "Designed in California" will be printed and the item will be made on the spot and on demand. Transportation demand will decrease dramatically.

Second, it truly will mean "mass customization".  Mass customization has been a dream for a long time where people have predicted the benefits of large scale batch production coming to products which are made for a consumer of one.  In effect, this will be what 3D printing does.

Finally, it will put a lot of manufacturers out of business in total.  I essentially will make the product myself and will have no need of a "conversion" partner - i.e., the manufacturer.

The big winner in all this could be FEDEX and their acquisition of Kinkos many years ago could be a fantastic application for this.  Imagine the following the next time I want a case for my iPhone:

1. I download plans for the case I want.  I customize logos, words etc. on the case.  Perhaps I pay $1.99 for the plans for "one time use" and I get them right off the Apple store. 
2. Once completed I send them to FEDEX (like I do a document today) who routes it to the local FEDEX store (formerly Kinkos). 
3. The local FEDEX store "prints" the case for $5.00. 
4. I choose at this point whether to have FEDEX deliver it to my house through their "final mile" network or I pick it up.  

Voila!  No (or very limited raw material) inventory; customization for me specifically, made locally and ready to pick up in 1 hour.  Soon, just like we are used to "1 hour photographs" at Walgreens, we will have "1 hour manufacturing" and FEDEX may be in the best spot for this.  

(Note:  I have never seen anything saying FEDEX is planning this but I just think it makes sense.  In this very in depth and good article from 2011 entitled "3D Printing: The Future is Here" the author says "imagine a time when 3D manufacturers are as common as Kinkos offices completely ignoring the idea that for a lot of items Kinkos / Fedex office could be the manufacturer. ). 

More on 3D Printing

I had recently written thoughts on 3D printing (3D Printing - Don't Reduce Costs - Eliminate Them) and how I thought this could revolutionize how products get to market.  There are a lot of great things about this technology which will improve our lives however I definitely had a logistics and transportation slant to my reporting.

Yesterday, Steve Faktor at Forbes wrote how 3D printing is also a big opportunity for HP to reinvent themselves [ and this technology].  Read more about this and keep abreast of this technology.  I assure you this technology will change our lives eventually.

3D Printing - Don't Reduce Costs - Eliminate Them!

You have heard me say over and over again that the ultimate goal is not just cost reduction it is the actual elimination of costs.  Think e-books and iTunes® and think of all the costs which just were  totally eliminated.  No one figured out how to "reduce" the costs of shipping books rather they just eliminated the shipment all together.

An early trend I am watching now is the idea of 3D printing.  This may even be too early to call it a "Mega-trend" however I think it is something we should be aware of.  Just like the elimination of shipments of things which have been digitized (books and music) the next frontier are physical "hard" parts.

At the end of this post is a neat little video which explains this technology.  Think of it this way:  If you need to make something which is made out of one material you could just load the material, load the digital specs and the printer does the rest. The key for Logistics people is the part is printed at the point of use and on demand.  This has two implications.

First, as this gets better and better and costs come down for the machines more and more product will be made this way.  This means less product is made at some far away factory and shipped.  This will result in a continued headwind on shipping volumes.

Second, this will also dramatically reduce or even eliminate inventory.  No need to stock 30 days supply of something when you can "print on demand".  This also puts downward pressure on freight demands as less and less distribution will be needed (also has huge implications for warehousing).

3D Printers from Tasman Machinery

To the left you can see what these machines look like.  I just found these off the Tasman Machinery website (no endorsement just a good picture).  Like all electronic machines during their infant stage there is a lot more development to happen and I am sure it will happen.

Here is a picture of actual wearable shoes made with 3D printers and above is a picture of a model / replica of a ship made with 3D printers.

You may look at these products and say there is nothing to worry about as it will take a long time for these types of products to be brought into production.  Of course, I would have to remind you this is what people say about all disruptive and new technologies at the beginning.

 I think this will develop rapidly and this could be the "new normal" for a lot of manufacturing of sub assemblies and parts.  As I said above, this will eliminate the need to ship this product and, of course, lessen the demand for transportation.  One can clearly imagine a day when you walk into a store, need a basic product and rather than the hassle of inventory and distribution, the store clerk will just "print on demand" for you in the store.  Huge implications for freight costs and demand, inventory and warehousing and S&OP processes. 

According to a blog post by Richard Gottlieb at Global Toy News we may be at a tipping point as it relates to the use of 3D printing in the toy industry.  He rightfully highlights the implications and benefits of this technology by saying:

• If you own enough 3D printers, why would you need to own any inventory?  You could print out on demand.  It’s JIT (Just in Time) in its truest sense.
• If you can print out small batches without the need for molds or factories?  Anyone can enter the marketplace with a new item.  The only cost is for the material.  
• If the need for factories and engineers declines, what happens to people who currently hold those jobs?

Again, this is pre "mega trend" stage but watch it closely as these types of technologies have a way of taking off.

Below is a great little video explaining what this is all about: