When it comes to the characteristics of modern supply chain, the first impression hitting our mind is that supply chain is becoming more complex, closely-linked and of higher risk, due to the increasingly strengthened globalization. But the new change is faster, smaller, cheaper, and local supply chain.
He said robot and 3D printing make it possible to produce any solid component, even the whole products from these components without human resources. Do you feel inconceivable? But the fact is so. When robot and 3D printing achieve mass production (maybe within next five years), the largest spending of workers can be cut, it is obvious that most products will be cheaper. Paul noted in fact, on average, 23% lower in cost can be seen via this new approach.
In addition, it is also the technology that generates simpler and faster supply chain. According to a report by IBM Electronics, the minimum scale required to operate and be cost competitive has declined by an average of 90% in a software-defined supply chain environment. And “Faster” comes from open electronic market, which means less patent limitation. With the help of open-source design, the usage of low-cost robot and 3D printing, companies will introduce product to market much faster than before.
For me, the above features are easy to understand. But how does “local” comes out? It has been an inevitable fact that globalization is continuing pushing on, so global supply chain should have been closer and mounting global. But Paul thought global supply chain is giving way to local because of 3D printing, intelligent robotics and open source electronics.
As a consumer, I am really thrilled with the changes in the future. Every consumer desires lower-cost product and shorted time-to-market. But I have to throw cold water on the beautiful dream. Intelligent robot and 3D printing largely reduce the number of jobs and affect employment. For populous countries, the implementation of these new approaches will encounter a lot of hard obstacles, so difficult to overcome. Do you think so?
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supply chain, 3D printing, intelligent robots, new characteristics