Gigaom Sunday published a Paul Brodi commentary

Gigaom, the American Science and Technology blog website, published a commentary on Paul Brody's Sunday name, Paul Brody. As Vice president of the electronics industry organization in charge of IBM's global Business consulting services, Brody believes that the future global supply chain will be fast, small, inexpensive and localized due to the development of 3D printers, intelligent robots and open source hardware.

The following is an overview of the article:

"California Design, China Assembly" may be the best word for the current highly developed global supply chain. However, behind the simple words is a very complex supply chain operation process, they have the global supplier network, secondary assemblers and logistics services companies stitched together, forming a huge supply chain network.

Today's network of suppliers is huge, complex and global, but how to make it work in harmony is a huge challenge. Is there an alternative? We believe that the world is entering a new era of supply chains characterized by small, simple and localized localization, which is driven by a generation of manufacturing technologies such as 3D printers, intelligent robots, and open source hardware, also known as the "software-defined supply chain" (Software Tabbed Supply Chain).

Lower cost of simplified supply chain

In the next five years, the vast majority of major consumer products will be produced by the "Software definition of the supply chain," the application of cheaper and simpler. In fact, the average calculation of this new production model than the traditional model, the cost can be reduced by 23%. But low cost is nothing new, and it is really important to localize the supply chain and greatly simplify the supply chain.

With the help of Low-cost assembly robots and 3D printers, it is not only possible to manufacture almost any solid-state components, but also to assemble the entire product to become more efficient. As a result, the supply will be largely streamlined. A new IBM report shows that in a "software-defined supply chain" environment, the minimum level of production to achieve operational and cost competitiveness has fallen by an average of 90%, which will have a far-reaching impact on industrial structure and competition.

The 3D printer revolution is not a remote thing, it will begin to appear in large-scale production in the next five years. While there are doubts about the operational nature of its mass production, the study shows that the improved 3D manufacturing technology, combined with some key patents, can reduce the average cost of printed items by 79% in five years, and that the value will reach nearly 90% after ten years.

Reduction in Supply chain links

The most likely effect of the "software-defined supply chain" is that the many intermediate links we need to improve efficiency are lost. For example, mold and foundry manufacturers and special parts manufacturers may be replaced by 3D printers. There are also sub-assemblers who are at risk of being post, where their main advantage has been to take advantage of low-cost labour costs, while not much in manufacturing equipment.

Faster delivery of customized products

In the electronics industry, the use of open source design as the basis, supplemented by Low-cost 3D printer and robot assembly line, which will make the rapid docking of enterprises with the market possible, and at a reasonable price to sell small-scale production of goods.

For consumers, we think this will mean a quick customization of the product. If you live in an old house, an enterprise can offer a washing machine that is the same as an indoor style. If the spare parts of the washing machine are needed, the merchant can print it immediately, without the consumer running the second trip.

All in all, today's vast, complex global supply chain will allow a small, simple and localized supply chain.

Partners will be competitors

For enterprises entering this new supply chain era, there are as many opportunities and challenges as they face. To gain commercial profits, companies will need to compete with the same potential competitors, many of them former key suppliers.

In addition, due to the full implementation of digital production and design, enterprises may also face the risk of product piracy. Traditional sources of profit will also be under pressure, as some consumers may choose to print themselves instead of buying parts. Ultimately, the interests of all parties and the pattern of competition will change without exception.