Centralized supply chains (SCs) are prone to disruption, which makes them a risky choice for medical equipment production. Additive manufacturing (AM) allows for production localization and improvements in SC resilience. However, the comparative competitiveness of a localized SC from the time and cost perspective is still unclear. In this study, we investigate the competitiveness of localized medical part AM SCs against centralized ones by analyzing the responsiveness and cost of each SC. We utilize a real-world case study in which an AM service provider supplies medical parts to university medical centers in the Netherlands to construct six scenarios. We also develop a thorough empirical cost formulation for both central and local AM of patient-specific medical parts. The results of scenario analysis show that when utilizing the currently available AM technology, localized SC configurations significantly reduce the delivery time from about 54 to 27 h, but at a 4.3-fold higher cost. Hence, we illustrate that the cost difference between the localized and centralized scenarios can be reduced when state-of-the-art AM machines are utilized, demand volumes increase, and the distances between the SC network nodes expand. Moreover, our scenario analysis confirms that the cost of the measures taken to prevent dust dispersion associated with powder-bed fusion AM has a major impact on the total cost of localized AM SCs for medical parts. The results of this study contribute to the understanding of the relevant factors in deciding whether central or localized SC configurations can be used in the AM production of medical parts. Furthermore, this study provides managerial insights for decision-makers at governments and hospitals as well as AM service providers and AM equipment manufacturers.
Additive Manufacturing (AM) is a digital manufacturing technology that enables companies to rethink their supply chain (SC) design. By means of literature synthesis, we build new knowledge about the mechanisms AM induces to improve SC design and performance, as well as the disruptive changes AM can cause. We investigate opportunities to optimize SC design for manufacturing purposes by exploiting the characteristics of AM, e.g., its freedom in terms of shape design and complexity and the absence of a need for object-specific tools. We study the roles of demand, assortment, IT systems, sourcing, manufacturing, knowledge, warehousing, and transportation, and explore the effects and tradeoffs on various SC performance outcomes, including cost, assets, and responsiveness. The contribution of this article is twofold. First, through literature synthesis, we construct six AM SC mechanisms that can be used in SC design to achieve desired SC outcomes for AM production applications in certain (business) contexts. Second, we identify the disruptive ‘game-changing’ effects of AM for SC stakeholders. This knowledge can be used by other researchers to develop further research. Moreover, general and logistics managers can use the results to fully exploit the potential of AM for designing much improved supply chains. Innovators and policy makers can use the results to understand the potential game-changing consequences of AM.
19 January 2021 in Journal of Manufacturing Technology Management
Purpose: Although additive manufacturing (AM) has been demonstrated to have significant potential in improving spare part delivery operations and has been adopted to a degree in the aviation and automotive industries, its use in spare part production is still limited in other fields due to a variety of implementation barriers. The purpose of this article is to assess the significance of previously reported barriers in the context of the machine-building industry.Design/methodology/approach: Adoption barriers are identified from the literature and formulated as hypotheses, which are verified with a set of focus group interviews consisting of original equipment manufacturers (OEMs), AM service providers and quality inspection and insurance institutions. The results of the interviews are reported qualitatively, and the transcripts of the interviews are subjected to quantitative content analysis.Findings: The article identifies distrust in quality, insufficient material and design knowledge among stakeholders and poor availability of design documentation on spare parts as the key barriers of adopting AM in the production of spare parts. The three key barriers are interconnected and training engineers to be proficient in design and material issues as well as producing high-quality design documentation will yield the highest increase in AM implementation in spare parts.Originality/value: The article offers a unique approach as it investigates the subjective views of a cross-organizational group of industrial actors involved in the machine-building industry. The article contributes to the theory of digital spare parts by verifying and rejecting presented barriers of AM implementation and how they are interconnected.
Background: Additive manufacturing (AM) for patient-specific medical care products offers great opportunities. However, evidence about the supply chain (SC) performance impact based on empirical data is limited. Methods: In this case study, we gathered real-life data about a traditional manufacturing orthopedic shoe SC and developed future scenarios in which AM is introduced at various points and with different degrees of penetration in the SC. Results: Presently, AM can only replace traditional manufacturing of tools and shoe components at a higher total cost. However, with maturing technology, the complete AM production of orthopedic shoes is expected to become feasible. Theoretically, that could disrupt existing SCs, eliminating 70% of the SC steps, improving SC lead time by 90%, and altering SC relations. However, certain thresholds currently prevent disruption. Specifically, the AM of complete orthopedic shoes has to become possible, manufacturing prices have to drop, and traditional craftsmanship has to be integrated into the digital product design. Conclusions: A framework for transition pathways, including directions for future research, is formed. Findings provide valuable insights for scholars and decision makers in the patient-specific products industry, health insurance providers, and healthcare policy makers to be better prepared by adjusting SC designs, relationships, and remuneration programs while AM technology develops towards maturity.
Background: EU environmental legislations affecting global supply chains have come into force since 2022. As procurement plays a direct role effectuating this, the result of these legislations via procurement becomes relevant. Methods: A systematic literature review is used to synthesize 152 articles from managerial, business administrative, and supply chain journals. The Context–Intervention–Mechanism–Output framework (CIMO) is used as the lens by which the articles are analyzed. The articles present findings from diverse methodologies and combine green business-to-business procurement with at least one element from the CIMO framework. Results: Five conceptual frameworks of different green procurement strategies are developed, each explaining the strategy and its expected result. The strategies increasingly collaborate and by this increasingly reduce environmental impact. A comparison of the strategies identified variables which strengthen the working of environmental legislation as they contribute to collaboration. Conclusions: Customer demand is crucial for collaborative green procurement. Without this, environmental legislation will only achieve limited environmental objectives. Propositions are formulated on variables which, next to the business case, strengthen the working of environmental legislation. This article adds to the science by synthesizing the existing knowledge base into propositions and future research directions. The findings may also support policymakers in understanding the effectiveness of legislation.