Additive Manufacturing and Its Impact on the Supply Chain

Additive Manufacturing (AM) is rapidly gaining interest as a highly innovative manufacturing technology, having many advantages over more conventional manufacturing methods. These advantages include the ability to produce very complex structures that are relatively easily customized to specific user requirements. The fact that AM services become affordable for small companies or even for consumers offers possibilities for decentralized manufacturing, downstream in the supply chain. In addition, AM allows for high degrees of flexibility, both in product design and manufacturing, as a result of using smart CAD systems that may be based on accurate scanning technologies. The ability to work with low setup times and costs and to largely eliminate work in progress inventories while maintaining a high degree of supply chain responsiveness makes AM a promising alternative for low-volume, high-value items. In this chapter, we outline the basics of AM technologies, after which we discuss at a more advanced level its impact on the supply chain. Next, we turn to spare parts delivery in after-sales service supply chains; these slow moving parts are often mentioned as ideal candidates for AM. In a state-of-the-art report, we provide a methodology for the identification of spare parts that may appear promising candidates for the application of AM. We conclude with a field study conducted at a service provider in the aerospace industry.