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The software-defined supply chain
While everyone else was focusing on the technological hurdles of 3D printing, some people
at IBM zoomed in on the opportunities. In 2013 IBM released a study called “The new
software-defined supply chain; Preparing for the disruptive transformation of Electronics
design and manufacturing” by Paul Brody and Veena Pureswaran. Although Brody's and
Pureswaran's views and propositions might be considered a bit presumptuous, suggesting a
revolution in manufacturing in the coming five years, they did sum the potential impact of
3D printing on existing supply chains up in a nice way.
The study identified three disruptive emerging technologies that each would have an impact
on existing manufacturing patterns and supply chains, and together (according to the study)
they would revolutionize manufacturing, just like Henry Ford did with the assembly line:
·
3D Printing
·
Intelligent Robotics
·
Open Source Hardware
3D printing is considered the most important of the three technologies as it frees companies
from standardization and economies of scale. Intelligent robotics, which replaces manual
labor in production, are more sophisticated now than when industrial robots were introduced
in the 60s and 70s. A modern industrial robot like Baxter from Rethink Robotics costs over
20 000 USD, while most other industrial robots cost a few hundred thousand dollars. The
availability of flexible low-cost robots opens the field even for small manufacturing com-
panies. Hardware such as Arduino is now open source, just like open source software before
it, and is easily accessible for product developers. This is another factor that enables small
companies to enter the market with new innovations.
The “hardware” supply chain that evolved after Ford's invention of the assembly line has
some specific characteristics. It is large scale, each unit cost less when the scale of produc-
tion is increasing. This kind of supply chain is highly complex with layers of sub-suppliers
and contractors. It is also often global, with production in low-cost locations like China, In-
dia and other Asian countries. Brody and Pureswaran suggest that the software-defined sup-
ply will change this situation fundamentally. They propose that the entire patterns of global
manufacturing, trade, investment and competition will be uprooted. The supply chain will
go from being big, complex and global to being small, simple and local. Brody writes:
