3-D Printing Is Unlocking Value in Complex Military and Private-Sector Supply Chains

Additive manufacturing (also known as AM or 3-D Printing) is starting to take its place on the advanced manufacturing floor, allowing for the cost-effective production of end-use parts with complex designs or in small volumes.

Many of today’s additive manufacturing applications are found in the aerospace, automotive, and medical sectors, fueled by the demand for high-end parts with unique properties such as lower weight or personalized “units of one,” such as patient-specific medical devices.

As with many new technologies, the defense sector leads the way with innovation, paving the way for broader civilian use. Nations around the globe are pursuing military use cases that highlight the potential of additive manufacturing, such as:

• Manufacturing of unmanned aerial vehicles (UAV) and ground vehicles (UGV)—such as the 3-D-printed drones the United States Marine Corps has been routinely deploying with their platoons
• Rapid, delocalized and flexible manufacturing of mission-specific kits, tools, weapons, and drones at the front line when components are required in an area of operation featured with extended and disrupted supply chains
• 3-D-printed exoskeletal solutions that allow soldiers to perform beyond their natural limits of strength and physique
• Medical battlefield applications such as 3-D-printed wound closures for “good enough” first aid solutions until injured soldiers can be transported to a more advanced secondary location for further treatment
• Realizing time and cost savings in complex supply chains—such as providing a specific spare part that needs to travel from the manufacturing site, to a port, to a supply vessel, to a forward base, and to a defense platform (such as an aircraft carrier, for example) at the other side of the world

Unlocking Time and Cost Savings in Complex Military Supply Chains

Realizing time and cost savings in complex supply military chains is particularly intriguing for the defense sector. There are few things more complex than supplying and maintaining a far-away defense platform, such as an aircraft carrier operating in remote waters.

Armed services around the globe are starting to harness the potential of additive manufacturing beyond its historical use for rapid prototyping. NATO has implemented a Community of Interest (CoI) to bring together the additive manufacturing champions from its 29 member states, and highlighted the relevance and importance of it recently in the 2018 Framework for Future Alliance Operations Report.

At BCG, my colleagues and I have been supporting clients across the additive-manufacturing value chain since the early 2010s. For some companies, the technology represents just another tool in their manufacturing toolkit; for others, it lays the foundation for entire new business models—or threatens to disrupt existing ones.

Analyzing the Impact of Additive Manufacturing on Military Supply Chains

BCG’s Alessandro Busachi, a consultant in Milan, has been conducting research on additive manufacturing during his PhD thesis and time at the firm. He studies complex military supply chains and analyzes the potential impact of adding additive manufacturing into the mix. Using some of the UK Royal Navy’s supply chains as his working model and collaborating with an industry partner, he developed a cloud-based software platform called the Decision Support System. This platform mathematically describes these supply chains and calculates the potential time and cost savings if they were to use additive manufacturing to replace their traditional methods.

This approach takes a holistic, end-to-end look at the supply chain, which is important given the unit costs for an additive-manufacturing process are typically higher than traditional manufacturing. Take the materials, for example, which typically carry a price premium if certified for use in 3-D printers. Furthermore, the actual printing process can take quite long. In many situations though, end-to-end time and cost savings outweigh these downsides. For example, if a spare part for an aircraft carrier can be printed on location, it becomes available in days or weeks for a fraction of the logistics cost.

What sounds simple in theory is significantly more complex in practice. Every supply chain is different, and so are the many 3-D-printing technologies and process material combinations available today. There are dozens of additive manufacturing equipment manufacturers and a range of available materials including polymers, composites, metals, and ceramics. We hear from many clients that they are currently lacking the tools to assess the value proposition of additive manufacturing for their specific supply chains and/or business model.

The Decision Support System software prototype developed by Alessandro and his collaborators tackles this important issue. Not surprisingly, it has gained widespread interest and recognition. We were excited to learn that Decision Support System won the 2018 NATO Defence Innovation Challenge Award. (The award acknowledges entities, which develop innovative solutions for capabilities that NATO will require in the future.)

Applications in the Private Sector

Military supply chains can be particularly tricky. However, a remote oil rig or a mine in the middle of the rain forest represent similar challenges–not to mention even more extreme places like the moon or Mars.

Additive manufacturing has been evolving rapidly, in particular over the last years. A number of new 3-D-printing players and processes have entered the stage. An ecosystem is forming around the actual print job including material science, design and simulation capabilities, and secure exchange of 3-D designs through advanced collaboration software or blockchain.

Companies whose business model rely on complex global supply chains and delicate logistics should assess now what additive manufacturing may be able to do for them in the mid- to long-term. Evaluating the potential starts with taking a thorough look at the supply chain and leveraging advanced data and analytics tools, such as the Decision Support System.

I see a bright future for additive manufacturing in both the military domain and private sector, and expect its impact on manufacturing to increase significantly within the next five to 10 years. If you would like to learn more about its potential, please do not hesitate to reach out.