Lean and Mean: Why on-demand is in-demand for supply chain managers

“Digital inventory converted into physical inventory, as and when you need it, wherever you need and in the exact quantity required, equals true on-demand production with no waste.”

In my previous column, I discussed the benefits of virtual inventories and how, by pulling parts from a digital (rather than physical) inventory and then quickly and seamlessly 3D printing these parts, supply chain efficiencies can be significantly improved.

Supply Chain Management

The benefits of additive manufacturing (AM) in conjunction with virtual inventories are further demonstrated in the enablement of on-demand manufacturing – most notably with respect to batch-size. In most traditional manufacturing technologies, the minimal batch size is quite large (tens- or hundreds- of thousands, and sometimes millions of items in a single manufacturing run). Think about it – with conventional production methods, there is a large cost of switching what the line produces and therefore manufacturers typically produce in one run for current and future expected future demands. This creates a physical inventory of spare parts that may or may not be used in the future. However, this is expensive to produce, store and manage, particularly when there is no guarantee the parts will actually be used.

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