University Dissertation: 3D Printing and Logistics Industry

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This dissertation investigates the implications of 3D printing on the global logistics industry, examining its potential to revolutionize supply chains and manufacturing processes. The research explores the current developments in 3D printing technology, assessing its impact on mass customization and decentralized production. The study aims to evaluate the effects of 3D printing on global logistics over the next decade, addressing key research questions regarding its influence on manufacturing, supply chains, and the future of global transportation and warehousing. The dissertation considers limitations such as the focus on global aspects and the 20-year time frame. The research considers the potential for significant disruption within the industry, the evolution of manufacturing, and its impact on the demand for traditional transportation services. The study incorporates a literature review, research methodology, and results discussion to provide a comprehensive understanding of 3D printing's role in shaping the future of global logistics.
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Running Head: IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY
Dissertation
Implications of 3D Printing for the Global Logistics Industry
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 1
Executive Summary
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 2
Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Research Background..................................................................................................................4
Research Rationale.......................................................................................................................4
Research Aim...............................................................................................................................4
Research Objectives.....................................................................................................................5
Research Questions......................................................................................................................5
Research Scope............................................................................................................................6
Summary......................................................................................................................................6
Literature Review............................................................................................................................7
3D Printing and Advancements...................................................................................................7
Historical Aspect of 3D Printing..............................................................................................8
3D Printing Technology...........................................................................................................9
3D Printing Process................................................................................................................10
3D Printing, Manufacturing, and Supply Chains.......................................................................17
Summary....................................................................................................................................17
Research Methodology..................................................................................................................18
Summary....................................................................................................................................18
Results and Discussion..................................................................................................................18
Summary....................................................................................................................................18
Conclusion.....................................................................................................................................18
References......................................................................................................................................18
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 3
Introduction
3D Printing (3DP) has been growing gradually from prototyping to manufacturing customized
parts in low volume. It has started to create buzz around the industry professionals. However,
there is consideration that whether this would be a suitable field to invest large sums or it is just a
field of amusement. 3D printing can be seen spreading its wings to almost all the industry,
beginning from IT industry to manufacturing and supply chains. This paper has focused on
understanding the implications of the 3D printing technology for the global logistics industry
(Manners-Bell and Lyon, 2012). The logistics industry amply utilizes the various transportation
services and there are some speculations that the utilization of the 3D printing in this filed can
profoundly impacts the extent with which the transportation services are being demanded in the
market. Moreover, there are numerous geographies that can utilize this technology to build better
capitals.
The logistics industry combines six elements in general, namely, “consumption, design,
production, transport, selection, and final delivery.” One can observe that all the elements are
deeply connected and it is the expectation that embracing the 3D technology can streamline these
activities and goals can be achieved faster.
3D printing allows the companies involved in the development of the products in manufacturing
even single unit at lowest cost possible. Therefore, it can be stated that the manufacturing
companies do not have to bother about the mass production and economies of scale. The
reduction in the time and costs utilized for the production due to the expected growth in the 3D
technology is likely to positively impact the market price of the products being brought in the
market. Moreover, the reduction in the utilization of the resources for the product will help the
companies to produce the local products effectively and compete with the companies and the
products that are coming from abroad. It can also be stated that the companies that are coming
from the external market at present use the global logistics to a greater extent to compete with
the local market (Tatham et al, 2014). However, after the advancement in the 3D technologies,
one can expect growth in the manufacturing of the products from the local market which will
eventually improve the local market condition. The demand of the global logistics might reduce
due to this overturn of the manufacturing techniques. The above discussion helps in inferring that
3D technology might be disruptor for the technological industry. This disruptive technology is
likely to challenge the logistics and manufacturing. There are some of the researchers who have
realized that this technology might have appreciable impact as stated earlier (Van Diepen, 2012;
Markillie, 2012; Anderson, 2012).
There have been a series of debates concerning the 3D printing and the logistics. It is expected
that the evolution in the 3D technology is likely to revolutionize the methods that are utilized to
do the production of goods. The organizations will be gradually shifting from the transportation
oriented organization to the costs that are employed on the labor.
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 4
Research Background
3D printing technology has spent appreciable amount of time with the manufacturing industry as
there are some specific industries such as the automotive and aerospace that has utilized this
method to develop prototypes. It has been observed from the study that the stability and safety
provided by the products developed by 3D printing are almost similar to that of the products that
are manufactured through the traditional methods. It has been found that the utilization of this
technology in the development of the aircraft components positively impacts the overall weight
of the aircraft. Moreover, it contributes in the reduction of the carbon dioxide emission and saves
fuel. The 3D technology has also been used in the health care industry for some time now. The
term used for the 3D printing in the medical field is “additive manufacturing.” There are various
elements that are being manufactured in the medical sector such as the dental components and
the hip joints and are readily used by the doctors from around the world. The extent of 3D
printing technology has reached to the level that now there are some of the researchers who are
trying to replicate the human cells that can be used to replace the defective part of the
individuals. One might witness artificial human internal organs in the coming days if everything
went as desired and planned.
The use of 3D printing can be observed in the other sectors also. There are some fashion
designers and architects who are orienting towards this technology to develop models. Items
such as shoes, buildings, and even the eatable pizza are being developed by the 3D printing
technologies. 3D printing technology is the technology of replication done by the machines and
there is no limit to what can be replicated. One can view the development in the market
concerned with the 3D printing. Moreover, it is expected that in the near future most of the
industries will be substantially using this technology. This will allow the businesses to procure
and produce locally. Therefore, one can expect the impact it can have on the logistics industry.
This paper has tried to understand the same. The implication of the 3D advancement on the
logistics industry is the major area that is being investigated in this paper.
Research Rationale
The reason behind understanding the implication of the 3D printing technology is that this
technology seems to be at the forefront of the new era. However, there has been limited research
in this field and fewer researchers have shown interests in conducting the academic study.
Therefore, it has been understood by far that conduction of some more study in this field which
can help the industry understand this technology better is imperative. Considering this aspect,
this paper has been presented based on various research questions, aims, and objectives.
Research Aim
The research aim for this paper is to understand the implications of 3D printing for the global
logistics industry.
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 5
Research Objectives
Based on the research aim, mentioned below are the research objectives that have been defined:
- To assess the current developments of 3D printing technology
- To find out whether 3D printing will offer opportunities for mass customization and
decentralized production
- To evaluate the impact of the technology on global logistics industry in the next 10 years
- To improve overall understanding and provide an answer to as whether it is feasible for
3D printing to transform global transportation and warehousing
Research Questions
The study of some of the papers developed by the various researchers led to the understanding
that there exists close relationship between the 3D technology development and manufacturing
and logistics. Though the focus of the paper is to understand the 3D printing technology in
relation to the logistics, there are some of the research questions that have been defined which
will be used as the guide to take ahead the research further. The research paper is intended to
focus on the below mentioned questions while moving ahead with the study:
Central Question
What is the impact of 3D printing technology on the global logistics industry in the next decade?
Sub-research questions
1. What are the current developments in the 3D printing industry?
This question will help the researcher in getting proper insight into the developments that have
been done in the 3D printing industry. The purpose of investigating this question is to get an
overview of the various advancements and activities that have being conducted in this area.
Moreover, the investigation will help in understanding the overall scope of this technology.
2. How 3D printing technology impact manufacturing?
This sub research question has been defined to understand the way 3D printing is impacting the
manufacturing sector on global scale. The question will help the researcher in understanding the
impact in quantitative terms. Moreover, the researcher will try to understand that whether the use
of 3D printing technology in manufacturing bring any kind of competitive advantage to the
company involved in the same.
3. How 3D printing technology impact supply chains?
The question has been defined to understand whether 3D printing will have influence on the
supply chains or the logistics and if yes, then the extent of the same will be assessed. While
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 6
understanding this question, the inner supply chain activities will be understood, and then the
same will be assessed in comparison to the logistics that are concerned with the 3D printing.
4. What is the impact of 3D printing on the global logistics in the next two decade?
This question will help the researcher in understanding the future of 3D printing in global
logistics. The time period that has been taken for the assessment is two decades. It is the most
sought after aspect of the 3D printing technology that interests numerous individuals from the
manufacturing and logistics industry and, therefore, taking a close look at the same would be an
appreciable step for this research.
Research Scope
The paper that has been developed has certain limitations that cannot be ignored while studying
this report. The limitation of time has been the major constraint while preparing this paper.
Mentioned below are some of the scopes that have been defined which will be kept in
consideration while the work on this paper will be conducted:
- The global aspect has been chosen for the study as most of the information can be
gathered on global perspective rather than the location specific study.
- The logistic aspect that has been considered refers majorly to the sea routes as the focus
has been on the global aspect. The use of trucks and other minor road transportation
elements have not been consider as they may hamper the study of the global aspect.
Moreover, time consumption sought by such study would be extensive which is limited.
- The time period that has been considered to understand the future implications is 20
years.
- As the focus of this study is towards the 3D printing of the products and the
transportation of the same. Therefore, the attention will be kept on the products that can
be packed within the containers and transported.
- The study has concerned itself mainly with the advancements in the 3D technology and
the implications of the same on the logistics. Therefore, the various micro variables of a
particular country and the political situation of that country have not been picked up.
- The focus will be kept on the stakeholders who are of substantial size as the focus is the
global logistics.
Summary
The paper has tried to understand the implication of advancement in 3D printing on the global
logistics. The paper will be consulting various past researches to understand the growth the
impact it can have on the global supply chain. The 3D printing technology is expected to
substantially impact the manufacturing and supply chain industry and, therefore, it would be a
wise decision to understand this aspect with greater attention. There are certain limitations to this
research and, therefore, the whole research has been limited to certain premise such as keeping
major focus on global aspect and negligibly considering the local or minor aspects of logistics or
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3D printing. The paper will be addressing central research question with four sub-research
questions. The whole paper is based on certain research aims and objectives. The next chapter is
concerned with reviewing the past literature developed by various researchers on 3D printing
technology. Moreover, the analysis of the various research papers will be focused on the global
logistics and the way changes can be witnessed in the same due to the advancements.
Literature Review
9500
The literature review is concerned with understanding the studies that have in done in reference
to the 3D printing and global logistics by the various researchers. The studies concerning the 3D
printing technology and manufacturing are in abundance however the direct correlational study
of 3D printing technology and logistics are limited. This chapter will try to assess the various
studies and reach certain inference in relation to the research questions defined earlier.
3D Printing and Advancements
There have been various technological advancements that have impacted the human lives in
some way or the other. This field can be attributed as having comparatively more profound
impact on the human civilization than other advancements. Most of the technologies were
disruptive in nature. One such technology is 3D printing, which is gradually making its mark on
the human civilization (Gill and Hart, 2016). It is the expectation of the proponents of this
technology that there are various activities within the industry that are going to be obsolete in the
near future if the desired outcome associated with the 3D printing is achieved.
3D printing is also referred to as additive manufacturing. It has been termed as additive as it
creates object by adding something over the other. Traditionally, the process of manufacturing
was subtractive, that is the parts were molded and something were chiseled out to create
something. However, after the advancements in the manufacturing technologies, now the one
element is added with another to create something else. The 3D printing technology is one such
element with advanced capability (Lipson and Kurman, 2013). The use of 3D printing is getting
wider each passing day and various sectors are gradually accepting this technology. However, it
is only the initial phase of 3D technology and there is lot of developments one can witness in the
coming days.
The proponents of 3D printing technology have no doubt about the potential of this technology.
The 3DP technology has been widely covered by various researchers, and mainstream media.
Most claims with great confidence that the 3D printing technology will impact the current
manufacturing to greater extent and it might be possible that current manufacturing processes
might become obsolete. Moreover, one can expect this technology to break all the external
barriers such as geopolitical, economic or social and will be adopted by large number of
organizations around the world.
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 8
The major differentiating factor concerned with this technology is that, it is additive in nature.
The method of manufacturing allows the 3D printer to build parts at micro scale (sub mm scale).
One can clearly differentiate this technology from the basic manufacturing methods that are
existent around the industry. The traditional industries that are prevalent nowadays have
numerous limitations and one of them is the involvement of the human effort in manufacturing
the products (Bose et al, 2013). However, there are various technological advancements that can
be witnessed which have improved the way manufacturing is being done. Most of the tasks are
now being automated, but still they require human involvement to most extent. All these
traditional manufacturing methods that are being applied till date are using the subtracting
method for the production. That is, they subtract the big chunk of raw material to build desired
object. This can be observed as one of the major limitation of the traditional manufacturing
industry. The subtractive method prefers the utilization of the tools and fixtures for assembling
the various parts to form a structure.
Moreover, the traditional manufacturing process ends up wasting most of the raw materials
during chiseling out the useful parts. This method is in complete contrast to what 3D printing
technology has proposed. In 3D printing, the objects are developed by the addition of the
material one layer after another. 3D printing allows the manufacturing organizations to build
creative objects with complex designs (muth et al, 2014). Moreover, it gives freedom to the
individuals and organizations to think more creatively regarding the product designs without
concerning about the constraints such as costs and time. 3D printing allows development of
complex geometric objects. It has been stated by some of the researchers that the 3D printing is
an energy efficient technology. Moreover, it is expected to increase the efficiencies of the
manufacturing organizations in terms of time and cost.
The 3D printing technology has moved beyond the prototyping stage and has entered the actual
arena of product development and delivery. There are various industries that have started
utilizing this technology at small scale which is expected to grow in the near future. The reason
behind the same is that the technology is readily available to the small and big manufacturing
industries. It allows them to try the technology for various purposes. 3D printers now come at
different shapes and sizes with different price tags which has increased its affordability. The least
one need to pay to acquire a 3D printer is $1000. This level of affordability has allowed the
wider audience to get the access to this technology. The increase in the adoption rate has
increased the number of experiments that were being done with various product designs.
Historical Aspect of 3D Printing
First 3D printing technology came on the horizon was in 1980s. The nomenclature for this
product was “Rapid Prototyping Technologies.” The logic behind such nomenclature was that
this technology was perceived the faster and cost-effective method for the development of
prototypes for industrial or experimental use. The patent of this new technology was held by
Charles Hull who founded 3D Systems Corporation. The commercial 3D printer first came into
existence in the year 1987. The first system was kept under rigorous trial prior to selling in in
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 9
1988. Around 2000s, few companies emerged with focus on developing the 3D technologies
further, namely, EnvisionTec (2002) and ExOne (2005).
The initial competition was obvious between the various 3D technological advancements. Some
of the 3D printer companies tried to focus on the development of high end 3D printers for the
development of complex objects whereas there were some that focused on the development of
the 3D printers for the masses. However it can be referred to a calm timeline. The actual game
began after the year 2007 when the market witnessed the first system that was below $10,000.
This cheapest 3D printing was developed by 3D Systems. However, this price mark still failed to
attract the many proponents of the 3D printing technologies. Most of them were expecting that
the market will flock towards this product if the price goes below $5000. Yet, the year 2007 can
be stated as the important year for the development of 3D printing technologies. Dr. Bowyer
came up with the RepRap concept, which is an open-source method and acts as self-replicating
3D printer. The concept was found by Dr. Bowyer in the year 2004 however it didn’t take to
shoot before 2007. The year 2009 saw the major advancement in the 3D printing technology
when the first 3D printer kit was brought to the market which completely based on the
methodologies devised in RepRap. The name of this system was “BfB RapMan 3D.”
Some of the companies showed interest in RepRap concept however the major utilization of
RepRap was towards the open source community and developing the technology for fun.
Commercialization was not even near to this. The year 2012 saw the actual commercialization of
this technology with the introduction of the alternative 3D printing processes. The market saw
‘B9Creator’ and ‘From 1’ which came in June. The funding for the both the technologies were
done through Kickstarter.
The various advancements in the various aspects of the 3D printing from different companies
helped the 3D printing technology to reach new heights. The year 2012 saw the attraction
towards this technology from the various media channels. The year 2013 also witnessed
significant growth in the 3D technologies and still in continuation.
3D Printing Technology
The initiation of the 3D printing results into the 3D model of objects. There is different software
that is used for the development of the 3D objects. 3D CAD is the most preferred software that is
used by the industry engineers. Different files are created as per the required layers and then they
are filed into the system. The 3D printers are of different types with different purposes. There are
various materials that are used in 3D printing and the most basics are functional plastics, sand,
and ceramics. Some of the research is being done towards the development of bio products such
as foods. The most preferred material that is used in 3D printing is plastic. Sugar and chocolate
are also used in some of the specially designed 3D printers. The technologies used in the
different printers are different from one another. Despite so many benefits, there are also some
major limitations such as to design one category of product the 3D printer must be embedded
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 10
with product specific design and technology. There are 3D printers that only work with the
powdered material.
Another important aspect that needs to be understood about the 3D printers is that one cannot
simply purchase the product and use at normal device. It requires various initial steps that need
care prior to bring the actual product live. The major benefit is that, as the various parts can be
developed directly from the machine. Therefore, one just needs to develop the design of the
product and the rest of the activity can be handled by the machine.
3D Printing Process
There are various 3D printing processes that are utilized and the first process that was the
preferred most was Stereo-lithography (SL). The reason behind its popularity can be the
commercialization of the process. It is a laser based method. The photopolymer resins are
generally utilized. The process within SL is comparatively complex. The use of laser beam on
the resins hardens the surface as per the designed defined by the manufacturer. One of the
challenges in this process is that it requires the support structure for certain parts. Moreover, the
objects developed through the SL require be cleaning and curing. The process of curing is
concerned with further hardening the resins using the light intense environment. SL process has
been stated as one of the accurate process so far as it helps provide effective finishing of the
object surface. As stated earlier, despite these benefits the steps that are required to be taken in
the later stage makes it a challenging process to some extent.
Another processing method is, DLP (Digital Light Processing). It is almost similar to the SL as it
also utilizes photopolymers in the development. The difference between both is that one uses the
conventional lamp light rather than intense light. The DLP method is comparatively faster than
SL in terms of processing through light. Moreover, DLP is almost similar to SL in the
development of the accurate object and finishing. The similarities also extend to the demerit that
is the use of support at some of the development process. One of the major benefits is that DLP
wastes less resins than SL.
Apart from the two processes mentioned above there are also various other process that has been
developed. Some of them are highly advanced such as EBM (Electron Beam Melting) 3D
printing.
Electron Beam Melting is the most recent development in the 3D printing technology. The
technology has been developed by the Swedish company named Arcam. The parts are developed
through the utilization of the metal powder. The major differences one can witness in this 3D
printer from the others are the requirement of the heat source. The heat source is used for the
production of electron beam that are then used to printing. EBM effectively creates dense parts.
Therefore, the printing made from this machine is sometimes used in medical facilities. Another
effective and start of the art 3D printing technology is SDL that stands for Selective Deposition
Lamination. This processing methodology was developed by Mcor Technologies. The method of
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 11
building the parts in the SDL is through one layer after another. Each of the layers is connected
together using strong adhesives. The application of adhesives is selective based on the data
provided to the machine. The method of SDL mechanism is, initially the sheet of paper is fed
into the system with the selected adhesive. The next phase is concerned with the selective
adhesive application and then placing another paper over the previous one. After that,
pressurizing is done and tungsten carbide blade cuts through the sheet.
3D printing has been used by the automotive and aerospace industries to build prototypes
for some time now. Components manufactured with 3D printing offer the same safety and
stability as the traditionally manufactured components they replace but at a fraction of
the weight. Integrating such components into finished aircraft helps save fuel and
reduces CO 2 emissions. In medical technology, additive manufacturing – the industry term for
3D printing – has already achieved standards on par with traditional manufacturing
methods. Dental crowns, hip joint prosthetics, and hearing aid shells: 3D printing is used
wherever “replacement parts” for the body are needed. The medical industry will see
even more revolutionary developments in the years to come. Researchers are experimenting
with the printing of human cells. Artificial skin for burn victims, artificial ears, and
artificial kidneys are no longer a utopian vision. A Swiss-made 3D printer is designed
to manufacture lung tissue, and soon it will also print jawbone implants.
Fashion designers, architects, artists, and food technicians are experimenting with the
possibilities offered by 3D printing. Shoes, clothing, buildings, miniatures, even pizza –
all these things have already been printed. The potential for replication seems almost
boundless. Hardly a month goes by in which we don’t hear reports of something new that
has been manufactured by 3D printing. Nike has marketed the first athletic shoe
with 3D-printed components, a designer is launching her first collection of printed nylon
hats, 1) you can download templates for a pair of women’s shoes that can be printed out
overnight, 2) and there is a long-running competition among architects to produce
the first habitable printed structure,3) with ongoing research into the technologies and
materials best suited to the task.
But the market has also developed in less spectacular ways. Prices for 3D desktop
printers have already fallen below the EUR 1,000 mark, making them accessible to
private consumers as well. Not all of us have the ambition to design our own goods, but the
scene for so-called “fabbers” – people who print cell phone cases, mugs, jewelry, or game pieces
for their own personal use – is growing. In the commercial sector, 3D printing offers
the opportunity to move production close to the consumer. Experts nevertheless remain
skeptical that the technology will have much of an impact on global transport volumes in
the near future. The trend toward custom production is more likely to boost so-called
“last-mile” shipping. Many experts assume that in 20 or 50 years, we will have mobile
production platforms that print out components right where they are needed. This could mean
that we only need to move raw materials and 3D print cartridges around the world. Time will tell
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 12
whether such an extreme scenario becomes reality. One thing is for certain: The market share of
additive manufacturing will continue to grow. This white paper puts forward six theories
about how the technology will affect society as a whole and logistics in particular.
3D printers apply layer after layer of plastic, synthetic resin, metal, ceramic, or plaster without
producing any waste. While traditional manufacturing processes always involve the removal of
material through sanding or milling, additive manufacturing only consumes the material that is
actually needed. With one exception: Extra material is required to build support structures for
overhanging constructions. This “scaffolding” can be removed following the production
phase by immersion in a caustic solution.
When we look at how rapidly the various 3D print technologies have developed so far,4) we
can assume that more and more industries will invest in 3D printing. Manufacturers
from all types of industries are talking with consultants and running tests to see which
products they can someday produce using 3D print technology. Logistics Trend Radar, published
by DHL expects an annual growth rate of 13.5 percent for additive manufacturing. The
2013 study predicts that the global market of USD 1.8 billion in 2012 will grow to
USD 3.5 billion in 2017. The Logistics Trend Radar report of 2014 cites a McKinsey
study that forecasts a market of USD 550 billion in the year 2025.5). Experts agree that 3D
printing promotes local and regional production and that the next 20 years will see 3D print
centers spring up close to sales markets.
In the past, many companies outsourced their production to Asia to save costs. Now, 3D
printing gives them the option of “nearshoring” their production back to high-wage countries.
The most prominent advocate of this theory is US President Barack Obama, who sees the spread
of this technology as potentially revolutionizing the American economy. In 2013, the US
government earmarked USD 30 million to fund a research project into additive manufacturing.
The President asked Congress for its support to build additional 3D technology centers. Many of
the goods that are currently mass-produced will continue to be mass-produced. The main reason
is that many articles that can be very affordably manufactured with traditional processes would
be much too expensive to produce in large quantities using 3D printing. But one thing is certain:
The trend toward customization will continue. On the one hand you will have the tinkerers,
techies, and creative types who will design and print out their own coffee mugs, door knobs, or
towel racks. The “fabbers” will continue to grow in number, turning their own homes into
production centers. But not all of us have the ambition to become our own designers and
producers. Most of us will be happy to have manufacturers customize product designs to our
wishes. 3D printing makes it possible to accommodate individual customer requests during
production.
Manufacturers will no longer keep large volumes of standardized products in stock, moving
instead to a more flexible manufacturing model based on the “made to order” principle. This will
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 13
depend on progress in the coming years with the speed of 3D printing. The variety of products
will expand and production will become even more customized than it already is today in the
automotive industry. In the future, customers will modify the model of a lampshade online
before clicking the “Order” button. Increasingly individualized production will have an
impact on logistics: As mass production in East Asia declines, long-distance shipping will also
decline, but this could be accompanied by an increase in “last-mile” shipping. The vision
pursued with 3D print technology looks something like this: Goods no longer need to be shipped
halfway around the world, because they can be printed out close to the consumer. But for now,
the idea that in 35 years we will only be shipping raw materials and 3D print cartridges is still
just a faraway vision.
Logistics Trend Radar, which DHL published for the second time in 2014, cites ongoing
globalization as one of the megatrends of tomorrow. The spread of 3D printing could counteract
the trend toward globalization. But it is still unclear how great an impact 3D print technology
will have. Forecasters are also cautious when it comes to the overall impact of 3D printing on
transport volumes. Logistics Trend Radar names 3D printing as one of the technology trends
whose full impact will not become clear for at least 5 years and ranks the potential as
“moderate,” not “significant.” This hesitation is based on the uncertainty as to whether 3D
printing will be able to supplant traditional manufacturing processes. So it is not yet possible to
predict if and to what extent the spread of 3D print technology will affect global transport
volumes. Routes will likely shift – fewer finished products will be shipped from far away.
Meanwhile, the importance of local production sites close to consumer markets will increase.
Initially, this would mean an increase in “last mile” shipping. This assessment is based on the
experiences of recent years, which has seen a sharp rise in e-commerce. Even if it is safe to
assume that the do-ityourself community will grow, it is rather unlikely that every household will
print out its own goods at home. But when consumers demand a greater say in the design of their
products, “made to order” production models will be the response.
The volume of custom manufacturing will likely grow. But it is impossible to say for certain
whether this will actually lead to more package delivery trips and environmental pollution.
Efforts are already underway to reduce transport volumes by consolidating shipments and better
optimizing truckloads. As individualized production and distribution grows, such efforts must be
redoubled to prevent the volume of last-mile shipping from growing at the same rate. The media
hype surrounding 3D printing in the past two years and the growing popularity among private
citizens has a lot to do with the fact that this technology is essentially open to anyone. One
manufacturer of desktop 3D printers sold 12,000 such devices in 2012. Hobbyists and DIY’ers
can order a 3D printer kit for EUR 699, including a kilogram of plastic filament, and assemble it
themselves. The number of people who want to play with this technology will also grow in the
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 14
years to come. The “fabber” scene has emerged from the DIY communities who create their own
designs and print out their own bracelets coffee mugs, or self-portrait busts.
The generation coming of age today expects to be able to print out a chess piece or building
block overnight. Designs can be downloaded from the Internet or created with the help of iPad
apps. The three-dimensional object is prepared in the STL file format that any 3D printer can
read. Just send the file to the desktop printer – at home or in the 3D print shop around the
corner. That’s it! The world’s first 3D print shop opened in Zurich in 2012. Additional print
shops opened in Munich and Vienna in 2014. It’s safe to assume that 3D print shops, where
customers can go to have their own custom-designed objects manufactured, will continue to pop
up in major cities in the coming years. The greatest opportunities for additive manufacturing are
in replacement parts. Companies have an obligation to supply replacement parts to their
customers, even many years after the sale. Hanging onto these replacement parts ties up large
areas of storage, which costs money. Many replacement parts may no longer be usable after such
long periods of storage, so they have to be disposed. Older replacement parts can no longer be
used in new product versions when equipment is upgraded and new functionalities are added.
3D printing offers the solution to all these problems. It is possible to save a good deal of storage
space if all you need to do is archive digital blueprints.
It is no longer necessary to physically store seldom-used replacement parts. Replacement parts
for tools and machinery with improved functionality can be digitally adapted and printed out
only when needed. This saves materials and resources. The British, American, and Chinese
militaries have already adopted 3D printing for these very reasons. The US Army prints out
surgical instruments and protective masks directly in war zones. Shipping containers are
reconfigured as mobile 3D print shops in order to provide soldiers stationed abroad with the
equipment and replacement parts they need. NASA is also experimenting with the possibilities
offered by 3D printing and has commissioned the production of a 3D printer suitable for
deployment in outer space. Ideally, NASA would like to enable astronauts to print out their own
tools and replacement parts rather than having them sent up from Earth. The printer is due to be
flown up to the International Space Station for zero-gravity experiments in 2014.
Here on Earth, it is fans of vintage cars and aircraft who appreciate 3D print technology, which
allows them to print out replacement parts that are no longer available or sell them in online
marketplaces. The American comedian and talk show host Jay Leno, who owns an entire
warehouse full of vintage automobiles, is the most prominent fan of 3D printing.
On YouTube, Leno shows how he uses 3D printing to manufacture replacement parts for his
1907 White Steamer. Logistics service providers often handle the logistics of providing
replacement parts as one of their services. UPS and DHL have launched pilot projects to study
the viability of expanding their services to include 3D printing. Time will tell whether
manufacturers turn to their logistics service providers to store and maintain their blueprints or
whether this will be a new niche for IT specialists. Logistics service providers will only be
allowed to store and print out the data models if the manufacturers trust them and are prepared
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 15
to give them the 3D data models. What’s certain is that in the future, the “value” of a product
will reside in a digital file. Manufacturers will try to protect their intellectual property by
inserting copy protections and assigning licensing rights. It is too early to say what the role of the
logistics service providers will be in all of this. The prospect of increased global circulation
of digital blueprints and products being printed close to the consumer in the coming years raises
new questions. When there is no longer any physical border crossing, there is also no longer any
role for customs authorities. The elimination of import duties is just one of many consequences.
However, the loss of this source of income will hardly be felt in the customs authorities. In 2013,
the EU took in a total of EUR 4.2 billion in import duties from non-EU countries.
This is a relatively small amount compared to the income from excise tax (EUR 65.7 billion)
and import value-added tax (EUR 48.5 billion).7) It’s important to keep in mind, however,
that 3D printing will not be capable of replacing everything that Europe imports from faraway
lands. There will still be a need to ship raw materials along with textiles, leather, and products
made from mixed materials. But the digitization of commerce will have other consequences. If
goods no longer pass through border controls, then customs offices no longer have access to
them. In 2013, the German customs authorities blocked the import of over 3.9 million knock-off
goods with a value of EUR 134 million.8) The customs authorities also ensure compliance with
consumer protection measures and export control regulations, which provides security in
international commerce. This security could be undermined by the spread of 3D printing and the
transmission of goods in digital format. Other control mechanisms would need to be
implemented, such as we already see today in export control regulations. Here it is first and
foremost the responsibility of companies themselves to comply with mandatory regulations. It
remains to be seen how much legislators or customs authorities will “weigh in” and respond with
new regulations for 3D printing and the digital transmission of goods.
Supply Chain and 3D printing
When discussing emerging supply chain trends of this decade 3D printing (3DP) has become one
of the most disruptive phenomena to impact supply chains and the global logistics industry. The
technology has already made a notable impact in the manufacturing sector and is now starting to
enter homes and schools as well. However, while the expansion of 3DP into the private
consumer sector is an interesting development in its own right, the biggest potential for
disruption clearly lies in the industrial applications and how they will influence supply chains in
the next decade. This study reveals that various points of the supply chain are likely to be
impacted by 3DP. Among the findings are such examples as the implications for inventory and
logistics, its contribution to mass customization and portable manufacturing, the relevance
for digital supply chains and other supply chain trends such as cloud manufacturing.
Thus this study highlights a key trend that will significantly shape and influence the
next decade for logistics and supply chain.
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 16
This study utilizes primary and secondary data. First, the extensive amount of literature that is
available for supply chains and 3DP alike is analyzed. Then, connections between the technology
characteristics and current supply chain trends are drawn, uncovering potential impact areas.
Secondly, in-depth interviews are conducted with supply chain managers from different
industries to gain first hand insights about the current impacts of 3DP. The analysis examines
both opportunities and risks emerging from this technology. 3D printing has accelerated strongly
in recent years (Wohlers, 2014). The technology has come a long way from simple prototyping
to fully integrated utilizations in direct manufacturing and because of its many forms of
application, 3D printing is said to be one of the most significant industrial developments of this
decade (Manners-Bell and Lyon, 2012). This has lasting implications on many companies in
multiple industries such as production, research, business development and design (Cohen,
Sargeant and Somers, 2014). The impact of the technology on supply chains in particular
has been very strong and gave rise to new opportunities but also new risks
in this discipline. Wohlers (2014) anticipate that the global market size for 3D printing will
grow from 3 billion USD in 2013 to 13 billion USD by 2018, and surpass 21 billion USD by the
year 2020. Gartner reports similar numbers, forecasting the market to reach a size of 13 billion
USD in 2018 (Basiliere, 2013).
These numbers clearly show that the consensus among experts is that this technology is expected
to keep growing, which makes it an important element in the future of supply chains. This is why
supply chain managers and academics alike must follow the trends and developments of this
technology closely. This is the motivation for this research study. The ongoing increase in
market size is driven by the sheer variety of opportunities that 3D printing holds. The spectrum
of applications ranges from simple modeling tools used by hobbyists in their own home, over
specialized machines that create replicas of products as testable prototypes in the development
department of companies, to sophisticated industrial printers that are used for the direct
production of finished components (Cohen, Sargeant and Somers, 2014). Likewise, there is an
abundance of producers of 3D printing machines, spanning models that are targeting the
commercial market exclusively, and models that are focused on high-end industrial
use (Parker, 2014). This diversity has enabled the technology to find its way into many areas of
both commercial and private use. Numerous cases from the industry especially in the global
manufacturing sector are proof of the ongoing success of 3D printing. Large global
manufacturers such as General Electric, Siemens and Airbus are using the technology to produce
fuel nozzles (General Electric, 2015; Catts, 2013), gas turbine components (Kleinschmidt, 2014)
and aircraft parts (Airbus, 2014; Simmons, 2015). Other firms like the automotive company Ford
use the technology to produce tools for their production process, such as molds for casting (Ford,
2015). The consumer industry is embracing 3D printing in various ways as well, with the candy
goods manufacturer Hershey’s employing the technology to create customized pralines (Goldin,
2014), and IKEA experimenting with 3D printing in the context of design and the concept of
the connected home (Fawkes, 2014).
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 17
Academic research about 3D printing has accelerated alongside the emergence of the technology
in recent years, and while the topic of supply chains has increasingly gained more attention in
this respect, it remains an area that is largely underdeveloped compared to other domains.
Therefore, there is a strong need to address the underrepresentation of research that is
specifically concerned with the impacts of 3D printing on supply chains and supply chain
management. This study attends to this issue by focusing its investigation on the impacts of 3D
printing on the supply chain. Here, the term ‘Impacts’ specifically refers to the risks and
opportunities created as a consequence of 3D printing technology. Furthermore, the study makes
recommendations on how to manage these impacts. Many of the studies on the common impacts
of 3D printing blend in with research about its impacts on supply chains. This is due to the fact
that when authors describe the effects of the technology in general, they also touch upon issues
that are related to supply chain management (Birtchnell, Urry, Cook and Curry, 2013; Huang,
Liu, Mokasdar and Hou, 2013; Rayna and Striukova, 2014). Other publications are concerned
with the indirect impacts of 3D printing on businesses and societies, regularly investigating
phenomena that are potentially relevant for supply chain management as well (Burke, 2014;
Huang et al., 2013; Neely, 2014). These works are supplemented by studies that are focused
directly on the impacts of 3D printing on supply chains, of which there are only a few academic
works (Bhasin, Bodla, Division. and Phadnis., 2014; Nyman and Sarlin, 2014). Conclusively,
a lot of information about the impacts of 3D printing on supply chain management can be
gathered from related publications in the academic literature as well as in practitioner journals
and periodicals.
According to Birtchnell et al. (2013), Janssen et al. (2014), Tuck and Hague (2006) and Walter et
al. (2004), by being a very strong enabler of product customization, 3D printing can have
remarkable impacts on downstream sections of the supply chain, such as production and
distribution. Tailoring individualized offers to each customer and the involvement of clients in
design and production activities hold potential for a shift in priorities of cost and profit
management, and late stage postponement can make the supply chain more agile and flexible to
react to changes in the marketplace. The effect of 3D printing on supply chain sustainability is
under heavy debate. While researchers and practitioners agree that the technology offers
various benefits for preserving natural resources and reducing the global footprint of
manufacturing companies, whether this is enough for a fundamental shift in attitude towards a
more preservative, protective view on natural resources is yet to be confirmed or refuted by
additional studies and empirical evidence (Campbell, Williams, Ivanova and Garrett, 2011;
Lipson and Kurman, 2013; Nyman and Sarlin, 2014).
3D Printing, Manufacturing, and Supply Chains
Summary
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IMPLICATIONS OF 3D PRINTING FOR THE GLOBAL LOGISTICS INDUSTRY 18
Research Methodology
1500
Summary
Results and Discussion
3400
Summary
Conclusion
1800
References
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