{"id":34293,"date":"2018-11-13T17:59:32","date_gmt":"2018-11-13T22:59:32","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/adidas-lives-its-slogan-impossible-is-nothing-with-3-d-printed-sneakers\/"},"modified":"2018-11-13T17:59:32","modified_gmt":"2018-11-13T22:59:32","slug":"adidas-lives-its-slogan-impossible-is-nothing-with-3-d-printed-sneakers","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/adidas-lives-its-slogan-impossible-is-nothing-with-3-d-printed-sneakers\/","title":{"rendered":"Adidas Lives its Slogan, Impossible is Nothing, with 3-D Printed Sneakers"},"content":{"rendered":"

Retailers must Rebound. <\/strong>The retail industry has seen a lot of disruption, particularly with the rise of e-commerce.\u00a0 The \u201cAmazon Effect\u201d is frequently credited with having normalized a \u201cfrictionless shopping process with near-immediate results\u201d [1].\u00a0 Customer expectations for the speed and quality of service are amplified; demand for personalized products and shopping experiences is growing, too.\u00a0 As the chart below demonstrates, traditional retailers must evolve their business strategy in order to remain competitive.<\/p>\n

Figure 1:\"\"<\/a><\/p>\n

Is 3-D Printing the Solution?\u00a0 <\/strong>The appeal of 3-D printing \u2013 or additively fabricating a physical object from a 3-D digital model \u2013 is primarily two-fold in the retail space.\u00a0 First, it promises to enable the \u201cmass customization\u201d of products. \u00a03-D printing can be used to fulfill low-volume orders in a cost-effective manner, facilitating a shift from \u201ceconomies of scale\u201d to \u201ceconomies of one\u201d [2]. \u00a0Second, 3-D printing technology can streamline the supply chain.\u00a0 Products can be made-to-order as demand is actualized, allowing retailers to hold (and ultimately discount) less inventory.\u00a0 3-D printing does not require the costly custom molds used in traditional manufacturing.\u00a0 Plus, 3-D printing facilities can be setup close to the customer, improving delivery speed and reducing shipping costs [3].<\/p>\n

In reality, though, 3-D printing has remained largely unproven in the retail space because of basic limitations.\u00a0 Layer-by-layer printing is a relatively slow means of manufacturing and is only compatible with a narrow range of materials.\u00a0 Further, if the printing process is not constant and automated, cost efficiencies can be lost [4].<\/p>\n

Adidas Finds a Way.\u00a0 <\/strong>Sportswear retailer Adidas has made a significant strategic commitment to 3-D printing, with ambition to be \u201cthe world\u2019s biggest producer of 3D printed products\u201d [5].\u00a0 Adidas\u2019 Futurecraft 4D<\/em> sneaker, 100,000 units of which will be released this year, features an ornate, lattice-structured midsole constructed via 3-D printing [6].\u00a0 The key to Adidas\u2019 claim that it can use 3-D printing in a profitable and scalable way? \u00a0A partnership with the Silicon Valley startup called Carbon.\u00a0 <\/em><\/p>\n

Carbon, with a current estimated valuation of $1.7B, purports to have developed a technology with \u201cnight and day\u201d advantages over traditional 3-D printing [7].\u00a0 Carbon uses a photochemical process that effectively extracts the desired structure (per digital specifications) as a single piece from a pool of UV-curable liquid resin.\u00a0 This style of 3-D printing produces more structural integrity than the standard layer-by-layer approach, and can be executed at 100 times the speed [8].\u00a0 Importantly, because Carbon\u2019s mission is to support large-scale manufacturing, the hardware units within its 3-D printing system have been designed such that the production of 3-D objects can be highly automated [9].<\/p>\n

Figures 2 and 3:<\/p>\n

\"\"<\/a>\"\"<\/p>\n

Presently, Adidas is busy marketing its innovative sneaker line and reorganizing its supply chain to capture the value of 3-D printing.\u00a0 Because the demand for printed midsoles is expected to come from Western countries first, the manufacturing of these sneakers will not happen in Asia per usual.\u00a0 Instead, Adidas opened a new local facility, called the \u201cSpeedfactory,\u201d in Ansbach, Germany and equipped it with Carbon\u2019s printing machines. Adidas has plans to open another facility in Atlanta soon [10].<\/p>\n

In the medium term, Adidas expects to scale up production of its Futurecraft 4D <\/em>sneaker to millions of units per year [11].\u00a0 This is where Adidas can begin to fulfill its ultimate vision, and take advantage of the capacity for product customization.\u00a0 Going forward, the idea is to use 3-D printing for personalized midsoles with varying levels of density and elasticity to match each customer\u2019s preference for support and performance. \u00a0And while customers today are accustomed to paying a premium and waiting several weeks for customized sneakers, Adidas envisions a future where printed midsoles are affordable and delivered in under a week [12].<\/p>\n

Potential Pitfalls for Adidas.\u00a0 <\/strong>It should be cautioned that many unknowns remain, including the cost of this project as it grows. Adidas would be well advised to monitor the cost drivers of production. For example, as Adidas pursues additional customization of its midsoles, the pre-printing costs could rise (e.g. skilled labor to design and review digital 3-D specifications).\u00a0 Or, Carbon might go public and change the pricing model for leasing and servicing its 3-D printing machines.\u00a0 Adidas could also find that the yield of the Carbon 3-D printers drops as they are pushed to a higher utilization.<\/p>\n

What do you think?\u00a0 <\/strong>There is a lot of hype for the Adidas Futurecraft 4D <\/em>sneaker \u2013 it represents a compelling retail use case for 3-D printing.\u00a0 Still, skeptics will argue that 3-D printed sneakers are chiefly being used by Adidas for brand marketing, suggesting that the real value is in \u201cthe kind of halo that the chess-playing computer Deep Blue brought IBM\u201d [13].<\/p>\n

Is the Futurecraft 4D <\/em>sneaker a glimpse into the future of manufacturing?\u00a0 Will 3-D printing be an enduring technological innovation in the retail space?\u00a0 Or is the value, here, in the novelty and marketing potential?<\/p>\n

Word Count: 797<\/p>\n

Sources<\/strong><\/span><\/p>\n

    \n
  1. Grosman, Lin. \u201cWhat The Amazon Effect Means For Retailers.\u201d\u00a0Forbes<\/em>, February 22, 2018, forbes.com\/sites\/forbescommunicationscouncil\/2018\/02\/22\/what-the-amazon-effect-means-for-retailers\/#6ccdba482ded<\/a>, accessed November 2018.<\/li>\n
  2. Brown, Alan. \u201cChain Reaction: Why Additive Manufacturing is about to Transform the Supply Chain,\u201d Mechanical Engineering <\/em>140, no. 10 (October 2018): 30-35.<\/li>\n
  3. Sodhi, ManMohan S., and Christopher S. Tang. \u201cSupply Chains Built for Speed and Customization.\u201d\u00a0MIT Sloan Management Review<\/em>, June 06, 2017, sloanreview.mit.edu\/article\/supply-chains-built-for-speed-and-customization, accessed November 2018.<\/li>\n
  4. Bourzac, Katherine. \u201cCarbon Prints Amazing Materials.\u201d MIT Technology Review, <\/em>June 27, 2017, https:\/\/www.technologyreview.com\/s\/607964\/carbon-prints-amazing-materials<\/a>, accessed November 2018.<\/li>\n
  5. Cheng, Andria. \u201cHow Adidas Plans to Bring 3D Printing to the Masses.\u201d\u00a0Forbes<\/em>, May 22, 2018, https:\/\/www.forbes.com\/sites\/andriacheng\/2018\/05\/22\/with-adidas-3d-printing-may-finally-see-its-mass-retail-potential\/#29f4813e4a60<\/a>, accessed November 2018.<\/li>\n
  6. Ibid.<\/li>\n
  7. Ibid.<\/li>\n
  8. Caliendo, Heather. \u201c3D Printing, Silicon Valley Style.\u201d Plastics Technology, <\/em>October 31, 2018, https:\/\/www.ptonline.com\/articles\/3d-printing-silicon-valley-style, accessed November 2018.<\/li>\n
  9. Carbon, https:\/\/www.carbon3d.com, accessed November 2018.<\/li>\n
  10. Sodhi and Tang, \u201cSupply Chains Built for Speed and Customization.\u201d<\/li>\n
  11. Cheng, \u201cHow Adidas Plans to Bring 3D Printing to the Masses.\u201d<\/li>\n
  12. Sodhi and Tang, \u201cSupply Chains Built for Speed and Customization.\u201d<\/li>\n
  13. Sodhi, ManMohan. \u201c3-D Printed Sports Shoes are More About Your Wallet Than Your Feet,\u201d Rockaway <\/em>(November 2017).<\/li>\n<\/ol>\n

     <\/p>\n

    Figure 1 Source:\u00a0Zealley, John, et al. \u201cMarketers Need to Stop Focusing on Loyalty and Start Thinking About Relevance.\u201d\u00a0性视界 Business Review<\/em>, April 23, 2018, hbr.org\/2018\/03\/marketers-need-to-stop-focusing-on-loyalty-and-start-thinking-about-relevance, accessed November 2018.<\/p>\n

    Figures 2 and 3 Source:\u00a0https:\/\/www.carbon3d.com<\/p>\n","protected":false},"excerpt":{"rendered":"

    With its new Futurecraft 4D sneaker, Adidas is striving to become the world\u2019s biggest producer of 3-D printed products.<\/p>\n","protected":false},"author":11350,"featured_media":34374,"comment_status":"open","ping_status":"closed","template":"","categories":[4102,3340],"class_list":["post-34293","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-3dprinting","category-additive-manufacturing","hck-taxonomy-organization-adidas","hck-taxonomy-industry-retail","hck-taxonomy-country-germany"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2018\/","yoast_head":"\nAdidas Lives its Slogan, Impossible is Nothing, with 3-D Printed Sneakers - 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\/adidas-lives-its-slogan-impossible-is-nothing-with-3-d-printed-sneakers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Adidas Lives its Slogan, Impossible is Nothing, with 3-D Printed Sneakers - 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