Supply Chain Evolution through Additive Manufacturing

To survive and thrive in the future

Henk Harmse

Senior Manager Outbound Operations

Agenda

1. Impact of Industrial Revolutions on Supply Chain

2. Current Supply Chain model

3. Effect of systems on Supply Chain evolution

4. Disruptive technologies of the 4th Industrial Revolution

5. What is Additive Manufacturing?

6. Impact of Additive Manufacturing on the Supply Chain

7. AM Eco system

8. AM impact on automotive Supply Chain

9. Case study Eco system design challenge

10. New model to thrive in 4th IR

11. Requirements to thrive in the 4th IR

12. Questions

1

Impact of Industrial Revolutions on Supply Chain

2

Craftsman's ship to 1st Industrial Revolution

2-3rd Industrial Revolution

4th Industrial Revolution

?

Craft End Consumer/Market Village

Suppliers Manufacturer’s factory Warehouse Distributor Retailer End Customer

Linear Supply Chain

3

Plan Move SellSource Make

Effect of Systems on Supply Chain Evolution

4

Supply Chain

Demand Chain

Demand Network

Use of Personal Computer

ERP/CRM

Internet

Globalization

Globalization

Globalization

Supply Chain EvolutionSystem

Moving from linear Supply Chain to Demand Network

5

Effect of Systems on Supply Chain Evolution

6

Supply Chain

Demand Chain

Demand Network

?

Use of Personal Computer

ERP/CRM

Internet

New disruptive

technologies

Globalization

Globalization

Globalization

?

Supply Chain EvolutionSystem

Disruptive Technologies of IR4

7

Big Data &

Analytics

Autonomous

robots

Simulation

Horizontal & Vertical

system integration

Industrial Internet

of Things

Cybersecurity

The CloudAdditive

Manufacturing

DisruptiveTechnologies

What is Additive Manufacturing?

8

Business Strategy

Supply Chain

Sourcing Financial

Asset Man HR IT

Safety

IP/Legal

SalesR&D

But a Disruptive Strategic Intervention

AM not only a technology

Environmental MaintenanceC

ult

ure

Stru

ctu

re

Impact of Additive Manufacturing on the Supply Chain

10

1st Industrial Revolution

2-3rd Industrial Revolution

4th Industrial Revolution

Suppliers Manufacturer’s factory Warehouse Distributor Retailer End Customer

Craft End Consumer/Market Village

Linear Supply Chain vs Eco System

11

VSSuppliers Manufacturer’s factory Warehouse Distributor Retailer End Customer

AM Impact on Automotive Supply Chain

LSEVSmart Car Additive

>2000

+- 1 ton

3-5 years

+-57

450 kg

3-12 months

3 days

Parts

Mass

R&D time

Safety

Production

3-4 times

GE Eco System Design Challenge

13

GE challenged the public to redesign a metal jet engine bracket, making it 30% lighter while preserving it’s integrity and mechanical properties like stiffness.

The bracket attaches to the outside of the engine. Manufacturing andMaintenance crews use it to manipulate jet engines like the GEnX which Weighs 12800 pounds.

Original Bracket Additive Design

Weight 2 033 grams ?

Weightreduction

14

The global 3D printing challenge was held by GE and the open engineering Community GrabCAD. 56 Countries submitted nearly 700 bracket designs.10 Designs were selected, printed and tested.

1 2 3 4 5

6 7 8 9 10

GE Eco System Design Challenge

15

GE Eco System Design Challenge

3

Original Additive

2 033 gr 327 grWeight

84%Weight red

Mr. Arie Kurniawan from Salatiga in central Java, Indonisia. He runs a small engineering and design firm called DTECH-ENGINEERING with his brother.

Effect of Systems on Supply Chain Evolution

16

Supply Chain

Demand Chain

Demand Network

Use of Personal Computer

ERP/CRM

Internet

Additive

Manufacturing

Globalization

Globalization

Globalization

Supply Chain EvolutionSystem

Agile Demand Network Glocalization

From Supply Chain to Agile Demand Network

17

From Supply Chain To Agile Demand Network

Globalization Glocalization

Multiple warehouses E-warehousing

Complex supply chain with many decoupling points

Agile Demand Network with very few decoupling points

Produce parts at lowest cost location Produce parts close to point of consumption

Inventory obsolescence No inventory obsolescence

EOQ Single item - customization

From Supply Chain to Agile Demand Network

18

From Supply Chain To Agile Demand Network

Long lead times On demand at point of consumption

Lowest cost TCOO (Total cost of Ownership)

Fragmented information Real time visibility

Focus on linear processes Focus on Ecosystem integration

Functional specialization and silo management along supply chain with emphasis on supply

Processes based on dynamic, agile eco-systems and cross functional interaction with emphasis on demand

The Future?

19

Questions?

20

Thank You