{"id":19880,"date":"2016-11-18T17:19:16","date_gmt":"2016-11-18T22:19:16","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/will-your-next-running-shoe-be-3d-printed\/"},"modified":"2016-11-19T00:29:27","modified_gmt":"2016-11-19T05:29:27","slug":"will-your-next-running-shoe-be-3d-printed","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/will-your-next-running-shoe-be-3d-printed\/","title":{"rendered":"Will your next running shoe be 3D-printed?"},"content":{"rendered":"<p><strong><u>CONTEXT<\/u><\/strong><\/p>\n<p>Before we take a look at how Under Armour is reinventing its supply chain by adopting digital technologies, it\u2019s important to note a few facts \u2013<\/p>\n<ul>\n<li>In even the most advanced footwear manufacturing facility,<strong> ~150-200 people <\/strong>touch a pair of shoes as it moves down the production line [1]<\/li>\n<li>On average, a running shoe is manufactured using <strong>55 different pieces<\/strong> [2]<\/li>\n<li>In the traditional manufacturing model, it takes about <strong>12-14 months<\/strong> to move from ideation to full production for running shoes [1]<\/li>\n<\/ul>\n<p>The apparel and footwear industry has not seen much innovation around its manufacturing processes in the last century. However, the emergence and adoption of technologies such as 3D-printing, scanning, and imaging are changing the way Nike, Adidas, New Balance, and Under Armour design shoes. These technologies are essentially disrupting the footwear design and production process by enabling customization and reducing lead times and time in transit. [3]<\/p>\n<p>Figure 1 below provides a snapshot of the supply chain model before and after the introduction of 3D-printing.<\/p>\n<p style=\"text-align: center\"><span style=\"text-decoration: underline\">Figure 1 &#8211; How 3D-Printing is disrupting \u00a0footwear manufacturing<\/span><\/p>\n<p><strong> <a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/UA_Supply_Chain_Model.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-19840 size-large\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/UA_Supply_Chain_Model-1024x719.png\" alt=\"Supply Chain Disruption and 3D-Printing\" width=\"640\" height=\"449\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/UA_Supply_Chain_Model-1024x719.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/UA_Supply_Chain_Model-300x211.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/UA_Supply_Chain_Model-768x539.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/UA_Supply_Chain_Model-600x421.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/UA_Supply_Chain_Model.png 1516w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/strong><\/p>\n<p><strong>OPERATING MODEL CHANGES<\/strong><strong>\u00a0<\/strong><\/p>\n<p><em><u>Previous model<\/u><\/em><\/p>\n<p>Prior to 2015, Under Armour\u2019s footwear and apparel were produced by 29 different manufacturers across 14 countries, with 65% of products made in China, Jordan, Vietnam, and Indonesia. [4] With rising labor and energy costs in China and other developing markets, complications with international shipping, and significant advancements in manufacturing technology (e.g., robotics, automation, 3D-printing), Under Armour began to reevaluate the 100-year old manufacturing model.<\/p>\n<p><em><u>New model<\/u><\/em><\/p>\n<p><em>\u201cTo develop and discover ways to use advanced manufacturing processes to make products on a smaller scale in local markets while improving products\u2019 performance.\u201d <\/em>[4]<\/p>\n<p>To achieve the above goal, Under Armour launched the <strong>\u201clocal-for-local\u201d<\/strong> manufacturing model, helping manufacture products closer to the markets where they are sold.<\/p>\n<p><em><u>How is Under Armour implementing this new model?<\/u><\/em><\/p>\n<p>Earlier this year, Under Armour unveiled the <strong>UA Lighthouse<\/strong>, its new center for manufacturing and design innovation in Baltimore. The center will focus on developing cutting-edge manufacturing processes and leveraging advanced technologies to design high-quality products locally with minimal amounts of raw materials.<\/p>\n<p>Specifically, this new innovation center in Baltimore has \u2013<\/p>\n<ul>\n<li><strong>3D Design and Body Scanning<\/strong> \u2013 Takes volumetric body scans and outputs specifications for designing custom footwear and apparel.<\/li>\n<li><strong>3D Printing and Prototyping <\/strong>\u2013 Five-axis machining center with fabrication tools that help convert scans and ideas into tangible products.<\/li>\n<li><strong>Apparel and Footwear Prototyping<\/strong> \u2013 Area within the center where designers and engineers will collaborate to design products and processes in ways beyond the traditional cut-and-make methods.<\/li>\n<li><strong>Apparel and Footwear Pilot Lines<\/strong> \u2013 Proving ground for manufacturing processes and concepts to see how they\u2019ll perform in full-scale production environments. [6]<\/li>\n<\/ul>\n<p>Here\u2019s a video that provides a sneak peek into the UA Lighthouse:<\/p>\n<p><iframe loading=\"lazy\" title=\"A first look inside the new facility where Under Armour creates athletic apparel of the future\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/C3I7-nVWc7M?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<p>And here\u2019s a video showcasing Under Armour\u2019s first 3D-printed shoe (UA Architech). [5]<\/p>\n<p><iframe loading=\"lazy\" title=\"UA ARCHITECH \u2013 3D-PRINTED IN BALTIMORE\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/oMaEy52LCA8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><em><u>Potential impact of Under Armour\u2019s new operating model<\/u><\/em><\/p>\n<p>Benefits to Under Armour:<\/p>\n<ul>\n<li><strong>On-demand manufacturing<\/strong> \u2013 Imagine walking into an Under Armour store, scanning your foot, and receiving a custom shoe within a few hours. That creates significant customer value, reduces time-to-market by removing intermediaries, eliminates shipping costs, and simplifies inventory management.<\/li>\n<li><strong>Waste reduction<\/strong> \u2013 The new processes and technologies are already helping Under Armour reduce wastage and raw material costs. Their <a href=\"https:\/\/www.underarmour.com\/en-us\/footwear\/ua-speed-form\/g\/3r13q\">SpeedForm<\/a> shoe is manufactured using 14 pieces versus the industry average of 55 pieces per running shoe. [2]<\/li>\n<li><strong>Increased agility<\/strong> \u2013 The biggest drawback of the traditional model is that by the time retail stores receive the products (~15 months after ideation), the styles may be out of style. In a recent interview, Randy Harward, Senior VP of Advanced Materials and Manufacturing at Under Armour, said: \u201cYou\u2019ll still have some things taking 12 to 14 months, but you\u2019ll have 30 to 50 percent of your product made within three weeks.\u201d [1]<\/li>\n<li><strong>Creation of local jobs <\/strong>\u2013 By deploying the local-for-local manufacturing model, Under Armour is essentially \u201conshoring\u201d jobs.<\/li>\n<\/ul>\n<p>Looking to the future, Under Armour will need to take actions to address the following:<\/p>\n<ul>\n<li><strong>Consumer perception<\/strong> \u2013 Large majority of consumers still perceive 3D-printing products to be a hype or marketing gimmick. Under Armour will need to spend a significant amount of time to educate consumers about the performance of 3D-printed shoes and apparel.<\/li>\n<li><strong>Economies of scale<\/strong> \u2013 While 3D-printing significantly compresses the supply chain, the costs of proprietary raw materials (usually sold at high profit margins) are high. Under Armour will need to work with their raw material partners to drive down costs. [8]<\/li>\n<li><strong>Intellectual property<\/strong> \u2013 3D-printing is expected to grow by 330% between 2012 and 2020 with a 48% adoption rate across manufacturing companies [9]. With such high adoption, anyone with the 3D scan can produce an Under Armour designed shoe.<\/li>\n<li><strong>Hiring skilled workforce <\/strong>\u2013 As new technologies disrupt the traditional cut-and-make model, Under Armour will need to invest in upskilling existing and potential employees by providing training for operating new technologies (3D-scanning, 3D-printing, etc.).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\">Word Count<\/span>: 798 words<\/p>\n<p><span style=\"text-decoration: underline\"><strong>Sources<\/strong><\/span><\/p>\n<p>[1]\u00a0<span class=\"lookup-result__content ng-binding\">Monroe, R. (2016, June 28). Under Armour\u2019s quest to Dethrone Nike and jump-start Baltimore, Bloomberg, http:\/\/www.bloomberg.com\/features\/2016-under-armour-kevin-plank\/, accessed November 17, 2016.<\/span><\/p>\n<p>[2]<span class=\"lookup-result__content ng-binding\">Sharrow, R. (2016, June 28). Kevin Plank: Under Armour\u2019s new city garage innovation center will help spur manufacturing, Baltimore Business Journal, http:\/\/www.bizjournals.com\/baltimore\/news\/2016\/06\/28\/kevin-plankunder-armours-new-city-garage.html,\u00a0accessed November 17, 2016.<\/span><\/p>\n<p>[3]\u00a0<span class=\"lookup-result__content ng-binding\">Schoffer, F. (2016, April 24). The race for the first 3D printed shoe, Venture Beat, http:\/\/venturebeat.com\/2016\/04\/24\/the-race-for-the-first-3d-printed-shoe\/,\u00a0accessed November 17, 2016.<\/span><\/p>\n<p>[4]\u00a0<span class=\"lookup-result__content ng-binding\">Mirabella, L. (2015, October 10). Under Armour\u2019s vision for future manufacturing: Make local for local, The Baltimore Sun, http:\/\/www.baltimoresun.com\/business\/bs-bz-under-armour-local-manufacturing-20151010-story.html,\u00a0accessed November 17, 2016.<\/span><\/p>\n<p>[5]\u00a0<span class=\"lookup-result__content ng-binding\">The 3D-Printed athletic shoe race and what it means for your retail based supply chain. (2016, April 17), PR Logistics Corp, http:\/\/prlogistics.com\/the-3d-printed-athletic-shoe-race-and-what-it-means-for-your-retail-based-supply-chain\/, accessed November 17, 2016.<\/span><\/p>\n<p>[6]\u00a0<span class=\"lookup-result__content ng-binding\">Under Armour, Inc. (2016, June 28). Under Armour opens UA Lighthouse manufacturing and design leadership center in the brand\u2019s hometown of Baltimore (NYSE: UA), \u00a0http:\/\/www.uabiz.com\/releasedetail.cfm?ReleaseID=977392, accessed November 17, 2016.<\/span><\/p>\n<p>[7]\u00a0<span class=\"lookup-result__content ng-binding\">Ogus, S. (2016, July 19). Inside under Armour\u2019s efforts to innovate apparel manufacturing and energize the city of Baltimore. <i>Forbes,\u00a0<\/i>http:\/\/www.forbes.com\/sites\/simonogus\/2016\/07\/19\/inside-under-armours-efforts-to-innovate-apparel-manufacturing-and-energize-the-city-of-baltimore\/#38616ca150cb, accessed November 17, 2016.<\/span><\/p>\n<p>[8]\u00a0<span class=\"lookup-result__content ng-binding\">Review, P. (2014, April 16). Beyond the hype: The industrial challenges for 3D printing, Yale Global Online: A Publication of the MacMillan Center, http:\/\/yaleglobal.yale.edu\/content\/beyond-hype-industrial-challenges-3d-printing, accessed November 18, 2016.<\/span><\/p>\n<p>[9]\u00a0<span class=\"lookup-result__content ng-binding\">Grynol, B. (2013). <i>Disruptive Manufacturing: The effects of 3D printing,\u00a0<\/i>\u00a0https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/ca\/Documents\/insights-and-issues\/ca-en-insights-issues-disruptive-manufacturing.pdf, accessed November 18, 2016.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Imagine walking into a store, scanning your foot, and receiving a custom tailored running shoe on the same day. Under Armour is turning this vision into reality by leveraging 3D-printing to disrupt the 100-year old cut-and-make footwear manufacturing model.<\/p>\n","protected":false},"author":2043,"featured_media":19918,"comment_status":"open","ping_status":"closed","template":"","categories":[2270,2086,869,159,161,459,2066],"class_list":["post-19880","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-digital-disruption","category-digital-transformation","category-disintermediation","category-footwear","category-manufacturing","category-on-demand-uncategorized","category-under-armour"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Will your next running shoe be 3D-printed? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/will-your-next-running-shoe-be-3d-printed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will your next running shoe be 3D-printed? - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Imagine walking into a store, scanning your foot, and receiving a custom tailored running shoe on the same day. 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