《供应链管理 Supply Chain Management》课程教学资源（研讨资料）Supply Chains Built for Speed and Customization.pdf_大学文库

FRONTIERS Supply Chains Built for Speed and Customization(Continued from page 7) in factories that are located close to the customer and that use 3-D on-demand production,the company not only decreases inventory printing and robotics-and delivered via the highest-speed options but also is able to retire a large number of molds and related equip- available. ment.Without this overhead,an order can be fulfilled from the We call these new supply chains high-speed bespoke supply chains, nearest of the company's manufacturing or development locations because they provide both quickness and product customization. worldwide using 3-D printing. And while the emergence of this new model is a function of the man- Developing a high-speed bespoke supply chain also allows mar- ufacturing of personalized products,its value extends to other uses, keters to add more product variety with niche demand,fattening such as the manufacturing and fulfillment of rarely ordered products. the so-called"long tail"of product demand to reap additional High-speed bespoke supply chains also offer the promise of unprece- profits from niche products. dented market intelligence for manufacturers by capturing demand Although unit manufacturing costs in a high-speed bespoke sup- signals directly from online customers about specific features they are ply chain are higher than in the base(lean or agile)supply chain,the seeking in existing products and prototypes. total supply chain's cost per unit can be These manifold opportunities also bring new lower for products with low levels of challenges for manufacturers,who will need to High-speed sporadic demand,because inventory- strategically integrate a wholly new supply chain bespoke supply and transportation-related costs are model into their operations. chains offer greatly reduced.And for customized products,customers have shown their A New Supply Chain Option the promise of willingness to pay more-sometimes Having the right type of base supply chain-one unprecedented much more-for products they've that is lean for cost efficiency or agile for time effi- market intelli- shaped themselves. ciency-is well-understood by manufacturers.It is Finally,the high-speed bespoke a choice that depends on whether the products are gence for supply chain is premised on manufac- commodities-functional goods for which cost manufacturers. turing facilities close to customers matters most-or fashion goods-innovative for quick delivery.Thus,high-speed products for which time to market is critical.Many bespoke supply chains translate into leading companies split their supply chains between the two in-country manufacturing jobs,which are being sought by types of products.Spanish clothing retailer Zara,for instance, governments in many countries,including the United States. makes its fashion goods in Europe,to be shipped quickly via The bulk of manufacturing,however,would remain in low-cost truck to European customers,while sourcing its commodity offshore locations,because customized products will remain a goods from China or India and shipping them by sea. small but valuable portion of overall unit sales. High-speed bespoke supply chains add a third option to this framework.Whether a company employs a lean supply chain or an The Model in Action agile supply chain or a combination of both,its operations are usu- Some leading global manufacturers have already begun experi- ally meant to be optimized for make-to-stock products based on menting with high-speed bespoke supply chains.Sports apparel forecasts.By contrast,high-speed bespoke supply chains fit the needs company Adidas,which offers customization of its shoes through of make-to-order products based on realized demand,not forecasts. its Mi Adidas("my Adidas")online platform,has built its first There's another advantage to extending the lean-agile frame- "Speedfactory"in Germany to add high-speed manufacturing to its work with a high-speed bespoke supply chain:Supply chain bespoke product offering.The company plans to open additional managers gain a potentially more cost-effective option for fulfilling Speedfactories in Western countries,including one in Atlanta, ultra-low-volume items,such as replacement parts for outdated Georgia,in 2017.While Adidas will continue to make the vast product models.Instead of relying on lean or agile supply chains to majority of its shoes via the Asian contractors in its base supply fulfill orders for products with low,sporadic demand from a slow- chain,it wants the Speedfactories to be able to produce an estimated turning inventory of finished or semifinished goods,companies 1 million custom-designed pairs of shoes annually to meet high- could fulfill such orders by high-speed bespoke supply chains. priced demand for customized products in Western countries. German automaker Daimler AG,for instance,is experimenting With these Speedfactories,Adidas plans to dramatically slash with 3-D printed plastic spare parts for Mercedes-Benz trucks,no the time between custom orders and delivery to four to five busi- matter how old the model.By moving these replacement parts to ness days.A customer could design and order his or her dream 8 MIT SLOAN MANAGEMENT REVIEW SUMMER 2017 SLOANREVIEW.MIT.EDU

8 MIT SLOAN MANAGEMENT REVIEW SUMMER 2017 SLOANREVIEW.MIT.EDU FRONTIERS in factories that are located close to the customer and that use 3-D printing and robotics — and delivered via the highest-speed options available. We call these new supply chains high-speed bespoke supply chains, because they provide both quickness and product customization. And while the emergence of this new model is a function of the manufacturing of personalized products, its value extends to other uses, such as the manufacturing and fulfillment of rarely ordered products. High-speed bespoke supply chains also offer the promise of unprecedented market intelligence for manufacturers by capturing demand signals directly from online customers about specific features they are seeking in existing products and prototypes. These manifold opportunities also bring new challenges for manufacturers, who will need to strategically integrate a wholly new supply chain model into their operations. A New Supply Chain Option Having the right type of base supply chain — one that is lean for cost efficiency or agile for time efficiency — is well-understood by manufacturers. It is a choice that depends on whether the products are commodities — functional goods for which cost matters most — or fashion goods — innovative products for which time to market is critical. Many leading companies split their supply chains between the two types of products. Spanish clothing retailer Zara, for instance, makes its fashion goods in Europe, to be shipped quickly via truck to European customers, while sourcing its commodity goods from China or India and shipping them by sea. High-speed bespoke supply chains add a third option to this framework. Whether a company employs a lean supply chain or an agile supply chain or a combination of both, its operations are usually meant to be optimized for make-to-stock products based on forecasts. By contrast, high-speed bespoke supply chains fit the needs of make-to-order products based on realized demand, not forecasts. There’s another advantage to extending the lean-agile framework with a high-speed bespoke supply chain: Supply chain managers gain a potentially more cost-effective option for fulfilling ultra-low-volume items, such as replacement parts for outdated product models. Instead of relying on lean or agile supply chains to fulfill orders for products with low, sporadic demand from a slowturning inventory of finished or semifinished goods, companies could fulfill such orders by high-speed bespoke supply chains. German automaker Daimler AG, for instance, is experimenting with 3-D printed plastic spare parts for Mercedes-Benz trucks, no matter how old the model. By moving these replacement parts to on-demand production, the company not only decreases inventory but also is able to retire a large number of molds and related equipment. Without this overhead, an order can be fulfilled from the nearest of the company’s manufacturing or development locations worldwide using 3-D printing. Developing a high-speed bespoke supply chain also allows marketers to add more product variety with niche demand, fattening the so-called “long tail” of product demand to reap additional profits from niche products. Although unit manufacturing costs in a high-speed bespoke supply chain are higher than in the base (lean or agile) supply chain, the total supply chain’s cost per unit can be lower for products with low levels of sporadic demand, because inventoryand transportation-related costs are greatly reduced. And for customized products, customers have shown their willingness to pay more — sometimes much more — for products they’ve shaped themselves. Finally, the high-speed bespoke supply chain is premised on manufacturing facilities close to customers for quick delivery. Thus, high-speed bespoke supply chains translate into in-country manufacturing jobs, which are being sought by governments in many countries, including the United States. The bulk of manufacturing, however, would remain in low-cost offshore locations, because customized products will remain a small but valuable portion of overall unit sales. The Model in Action Some leading global manufacturers have already begun experimenting with high-speed bespoke supply chains. Sports apparel company Adidas, which offers customization of its shoes through its Mi Adidas (“my Adidas”) online platform, has built its first “Speedfactory” in Germany to add high-speed manufacturing to its bespoke product offering. The company plans to open additional Speedfactories in Western countries, including one in Atlanta, Georgia, in 2017. While Adidas will continue to make the vast majority of its shoes via the Asian contractors in its base supply chain, it wants the Speedfactories to be able to produce an estimated 1 million custom-designed pairs of shoes annually to meet highpriced demand for customized products in Western countries. With these Speedfactories, Adidas plans to dramatically slash the time between custom orders and delivery to four to five business days. A customer could design and order his or her dream Supply Chains Built for Speed and Customization (Continued from page 7) High-speed bespoke supply chains offer the promise of unprecedented market intelli- gence for manufacturers

shoes on Monday and receive the pair on Friday.The company Another barrier is operational:3-D printers-supplemented can monitor its customers'creations on the web.If particular with other highly flexible and automated manufacturing equip- designs or features recur at high enough rates,Adidas can ment such as robots-must be able to actually make the incorporate them into standard shoes in the base supply chain. company's products,or at least some components that lend Personalized orders thus offer insight into customers'desires. themselves to quick and easy assembly.At present,Daimler is Nike also offers customization with its NikeiD program;cus- offering 3-D printed plastic spare parts but not,say,replacement tomized shoes can be ordered via its website.According to Nike gearboxes or engines.This obstacle will lessen over time as 3-D chief operating officer Eric Sprunk,the eventual plan is for cus- printing capabilities improve. tomers to be able to walk into a Nike store and have a 3-D-printed And then there is distribution.Most manufacturers are accus- shoe made within a matter of hours. tomed to delivering in bulk at low cost across long distances,with In the toy industry,Mattel Inc.is tapping into the maker speed often a secondary concern.High-speed bespoke supply chains movement and bringing on-demand manufacturing flip this model on its head.They are directly into customers'homes(essentially giving short in distance,light in volume,and people their own at-home,high-speed bespoke Retirement of offer quick delivery.The last mile of a supply chain)via a microwave-size 3-D printer a product now high-speed bespoke supply chain re- and computer app for children called ThingMaker. would mean sembles Amazon Prime more than any Set for release in fall 2017,the package's app will traditional manufacturing or wholesale let a child customize toys such as dinosaurs,robots, only that the delivery system. and dolls and then send the resulting stereolithog- product is The solution for most companies raphy file to the 3-D printer.The parts will be moved to building high-speed bespoke supply printed with ball-and-socket joints to be assembled chains is not to develop distribution by the child. the bespoke on their own.Instead they could either Although Mattel's idea is for customers to create supply chain. piggyback onto the efficient in-country their own stereolithography files,nothing stops infrastructure already built by e-commerce Mattel from offering retired models and"trial bal- leaders like Amazon,Alibaba,and,in- loons"as stereolithography files for 3-D printing at home. creasingly,Google,or outsource to in-country local delivery Analyzing orders for these files would help the company spot new services.Other options may emerge:For example,Amazon plans to market trends and bet on potential winners more confidently launch an Uber-like app that would,among other things,connect when deciding what to manufacture for store sales,say,in the individual truck drivers to shippers that need goods moved. Christmas period.Likewise,Mattel could retire some existing cash- While the financial and operational barriers to launching a cow products earlier based on trends it observes on falling orders high-speed bespoke supply chain are not trivial,they are modest in for stereolithography files.Of course,retirement of a product now comparison to what it took companies to build their legacy manu- would mean only that the product is moved to the bespoke supply facturing and distribution networks.Companies would be wise to chain,potentially available forever for 3-D printing at home. ride this newest wave of digital customer engagement.They should consider not only how adding a high-speed bespoke supply chain Barriers to Adoption could improve their existing business but also what new businesses Certainly there are barriers to a company setting up a high-speed and business models such a supply chain would enable. bespoke supply chain to complement its existing base supply chain. First,companies should be sure they understand whether and how ManMohan S.Sodhi is a professor of operations and they stand to benefit from a high-speed bespoke strategy-to supply chain management at Cass Business School at enable customized manufacturing to produce ultra-low-demand City University of London.Christopher S.Tang is a UCLA Distinguished Professor and the Edward W.Carter Chair in parts or to simply sense changes in customer demand patterns Business Administration at the UCLA Anderson School of much earlier than is possible now. Management in Los Angeles,California.Comment on this Next is the issue of additional investment.The direct cost of outfit- article at http://sloanreview.mit.edu/x/58419,or contact the authors at smrfeedback@mit.edu. ting asset-light 3-D printing facilities is low compared with the capital costs for traditional factories.But significant learning costs can arise Reprint 58419. related to adopting new technologies and a new supply chain model. Copyright Massachusetts Institute of Technology,2017.All rights reserved. SLOANREVIEW.MIT.EDU SUMMER 2017 MIT SLOAN MANAGEMENT REVIEW 9

SLOANREVIEW.MIT.EDU SUMMER 2017 MIT SLOAN MANAGEMENT REVIEW 9 shoes on Monday and receive the pair on Friday. The company can monitor its customers’ creations on the web. If particular designs or features recur at high enough rates, Adidas can incorporate them into standard shoes in the base supply chain. Personalized orders thus offer insight into customers’ desires. Nike also offers customization with its NikeiD program; customized shoes can be ordered via its website. According to Nike chief operating officer Eric Sprunk, the eventual plan is for customers to be able to walk into a Nike store and have a 3-D-printed shoe made within a matter of hours. In the toy industry, Mattel Inc. is tapping into the maker movement and bringing on-demand manufacturing directly into customers’ homes (essentially giving people their own at-home, high-speed bespoke supply chain) via a microwave-size 3-D printer and computer app for children called ThingMaker. Set for release in fall 2017, the package’s app will let a child customize toys such as dinosaurs, robots, and dolls and then send the resulting stereolithography file to the 3-D printer. The parts will be printed with ball-and-socket joints to be assembled by the child. Although Mattel’s idea is for customers to create their own stereolithography files, nothing stops Mattel from offering retired models and “trial balloons” as stereolithography files for 3-D printing at home. Analyzing orders for these files would help the company spot new market trends and bet on potential winners more confidently when deciding what to manufacture for store sales, say, in the Christmas period. Likewise, Mattel could retire some existing cashcow products earlier based on trends it observes on falling orders for stereolithography files. Of course, retirement of a product now would mean only that the product is moved to the bespoke supply chain, potentially available forever for 3-D printing at home. Barriers to Adoption Certainly there are barriers to a company setting up a high-speed bespoke supply chain to complement its existing base supply chain. First, companies should be sure they understand whether and how they stand to benefit from a high-speed bespoke strategy — to enable customized manufacturing to produce ultra-low-demand parts or to simply sense changes in customer demand patterns much earlier than is possible now. Next is the issue of additional investment. The direct cost of outfitting asset-light 3-D printing facilities is low compared with the capital costs for traditional factories. But significant learning costs can arise related to adopting new technologies and a new supply chain model. Another barrier is operational: 3-D printers — supplemented with other highly flexible and automated manufacturing equipment such as robots — must be able to actually make the company’s products, or at least some components that lend themselves to quick and easy assembly. At present, Daimler is offering 3-D printed plastic spare parts but not, say, replacement gearboxes or engines. This obstacle will lessen over time as 3-D printing capabilities improve. And then there is distribution. Most manufacturers are accustomed to delivering in bulk at low cost across long distances, with speed often a secondary concern. High-speed bespoke supply chains flip this model on its head. They are short in distance, light in volume, and offer quick delivery. The last mile of a high-speed bespoke supply chain resembles Amazon Prime more than any traditional manufacturing or wholesale delivery system. The solution for most companies building high-speed bespoke supply chains is not to develop distribution on their own. Instead they could either piggyback onto the efficient in-country infrastructure already built by e-commerce leaders like Amazon, Alibaba, and, increasingly, Google, or outsource to in-country local delivery services. Other options may emerge: For example, Amazon plans to launch an Uber-like app that would, among other things, connect individual truck drivers to shippers that need goods moved. While the financial and operational barriers to launching a high-speed bespoke supply chain are not trivial, they are modest in comparison to what it took companies to build their legacy manufacturing and distribution networks. Companies would be wise to ride this newest wave of digital customer engagement. They should consider not only how adding a high-speed bespoke supply chain could improve their existing business but also what new businesses and business models such a supply chain would enable. ManMohan S. Sodhi is a professor of operations and supply chain management at Cass Business School at City University of London. Christopher S. Tang is a UCLA Distinguished Professor and the Edward W. Carter Chair in Business Administration at the UCLA Anderson School of Management in Los Angeles, California. Comment on this article at http://sloanreview.mit.edu/x/58419, or contact the authors at smrfeedback@mit.edu. Reprint 58419. Copyright © Massachusetts Institute of Technology, 2017. All rights reserved. Retirement of a product now would mean only that the product is moved to the bespoke supply chain