The logistics industry is ripe for disruption as technological advancements in 3D printing are making the widespread adoption of instant production models a not so distant reality. 3D printing, also known as additive-manufacturing, utilizes digital models to create objects by printing successive layers of materials, which enables manufacturers to produce a single part in one operation as opposed to having to produce multiple components that are assembled into one part. The resultant cost savings for manufacturers are expected to be in the range of 35% to 65% per printed product. [1] Traditional manufacturing generally requires materials to be sourced and shipped from multiple locations to a factory where final goods are produced and subsequently stored in a warehouse, before being delivered to stores or consumers. In a world dominated by 3D printing, the traditional manufacturing process will be almost entirely overhauled as goods will be printed out close to, or perhaps even by, the consumer, eliminating the need for items to be transported halfway around the world. [2] As one can imagine, this has the potential to upend global logistics companies whose core business is to ship items around the world. In terms of the potential magnitude of this shift, McKinsey projects the global 3D printing market will grow exponentially over the next decade, from approximately $4 billion in 2015 to between $180 billion and $490 billion by 2025. [3]<\/p>\n
DHL is a global logistics company with a vision, according to its website, to be the \u201cLogistics Company for the World\u201d by offering \u201ca remarkable range of logistics solutions \u2013 from mission-critical express deliveries to economical freight transportation, from taking the complexity out of customs to managing the complexity of global supply chains and everything in between.\u201d [4] \u00a0In order to continue to realize this vision in a world where 3D printing is widely adopted by manufacturers, DHL understands that it will have to alter its range of logistics solutions. In a company report, DHL acknowledged, \u201cwe anticipate change from 3D printing that is both broad and deep, specifically in areas of spare parts manufacturing, individualized parts manufacturing, and end-of-runway 3D printing services.\u201d[2] The company is already exploring methods to incorporate 3D printing into its core services, and views the end-to-end spare parts on-demand space as a potentially promising entry point. Hundreds of millions of spare or replacement parts are held in storage by companies for many years after sales occur, some of which may never even be needed, which can be costly for companies. [2,5] With the successful adoption of 3D printing, companies will no longer have to store spare parts in warehouses, as they will be able to simply print the parts on demand. Rather than having companies print spare parts in-house, DHL is seeking to offer a rapid-delivery solution whereby it will create a network of 3D printers located in warehouses and distribution centers around the world. Under such a system, manufacturers would provide DHL with a 3D data model for each spare part, and DHL would process, print, and deliver the spare part order directly to the customer on demand. [2]<\/p>\n
While DHL continues to pursue this vision of creating a spare parts on demand service over the next three to ten years, the company has not yet been able to make a viable business case due to the costs for materials, hardware, and shipping. [2] Despite this, DHL should continue to allocate resources to this initiative and establish an actionable blueprint for implementation, given that over the next few years the costs of 3D printing should be expected to decrease as the technology progresses to a point where the business case becomes viable for DHL. When this happens, the barriers to entry within this space will be much lower, so DHL will want to be a first mover. Additionally, DHL should consider diversifying its potential 3D printing service offerings so that it is not solely dependent on manufacturers. One way to do this would be to establish brick and mortar 3D print shops for businesses and consumers, like the UPS or FedEx stores that exist today.<\/p>\n
While the idea of DHL entering the 3D printing space through an on demand spare parts service seems appropriate, there are certainly some questions that still must be answered. Does DHL have the capability and expertise required to incorporate 3D printing into its service offering? Will manufacturers be willing to share blueprints with DHL for proprietary products? Is this service offering just a short-term fix to a potentially existential issue for logistics companies if the use of 3D printing penetrates all households, ultimately limiting the need for DHL to the shipment of raw materials and 3D print cartridges?<\/p>\n
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[1] McKinsey & Company: Digital McKinsey. \u201cDisruptive technologies: Advances that will transform life, business, and the global economy.\u201d<\/p>\n
[https:\/\/www.mckinsey.com\/business-functions\/digital-mckinsey\/our-insights\/disruptive-technologies], accessed November 14, 2017.<\/p>\n
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[2] DHL Trend Research, \u201c3D Printing and The Future of Supply Chains\u201d (PDF file), downloaded<\/p>\n
from DHL website, [http:\/\/www.dhl.com\/content\/dam\/downloads\/g0\/about_us\/logistics_insights\/dhl_trendreport_3dprinting.pdf], accessed November 14, 2017.<\/p>\n
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[3] Tasha Keeney. \u201c3-D Printing: Analysts Are Underestimating The Future.\u201d Seeking Alpha, February 3, 2015. [https:\/\/seekingalpha.com\/article\/2877996-3-d-printing-analysts-are-underestimating-the-future], accessed November 2017.<\/p>\n
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[4] DHL. \u201cOur Vision, Our Mission, Our Strategy.\u201d [http:\/\/www.dhl.com\/en\/about_us\/company_portrait\/mission_and_vision.html], accessed November 2017.<\/p>\n
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[5] AEB, \u201cSix theories about how 3d printing will change logistics\u201d (PDF file), downloaded<\/p>\n
from Google, [http:\/\/documents.aeb.com\/brochures\/en\/aeb-white-paper-3d-printing.pdf], accessed November 14, 2017.<\/p>\n","protected":false},"excerpt":{"rendered":"
3D printing is forcing logistics companies, including DHL, to rethink their service offerings. <\/p>\n","protected":false},"author":9875,"featured_media":24861,"comment_status":"open","ping_status":"closed","template":"","categories":[525,21],"class_list":["post-24841","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-disruption","category-logistics","hck-taxonomy-organization-dhl"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\n