Optimizing the supply chain contains huge potential for OEMs to increase profitability . Reducing inventory costs with punctual delivery has been , for many years , the focus of supply chain management . Over the years , supply chains have been optimized to perfection , using algorithms and digital tools , but they are balanced on a knife ’ s edge . Covid 19 and the subsequent closing of borders have revealed the limits of planning and the fragility of supply chains to suppliers , OEMs , and end customers .
Ways to mitigate supply chain risks
When a part is needed urgently , every hour can cost manufacturers hundreds and thousands of dollars with the cost of the spare part itself often negligible compared to the economic and reputational damage caused by its absence . Increasing the buffer in warehouses could minimize the risk of supply gaps , but counteracts previous efforts to reduce inventory and increases tied up capital , warehousing costs and obsolescence . Another option is to source from several suppliers in multiple locations ; should one supplier fail , others can cover the demand . However , interconnected global supply chains are often dependent upon a few suppliers of basic materials . Subsequently , for specific parts or components , all worldwide suppliers might be affected by the material shortage . A better solution is not only supplier diversification , but also in material alternatives .
A third way to improve the resilience of the supply chain is to return to localized manufacturing – as witnessed at the beginning of the Covid-19 pandemic . This saw many manufacturers 3D print critical parts needed to fight Covid-19 – such as face shields or valves for respiratory devices . This manufacturing philosophy , named bridge manufacturing , can be used as a blueprint to generally improve supply chain resilience .
Essentially , bridge manufacturing means having a technically viable alternative to bridge a gap . This gap can be economic if other technologies are too expensive , or an availability gap , if parts produced in another manufacturing technology are unavailable . Bridge manufacturing requires a manufacturing alternative for the part that allows on-demand , decentralized production . This ensures the part can easily be made available anywhere globally in the event of a sudden unexpected shortage . Consequently , should supply chains be disrupted , the OEM or supplier has alternative options , potentially saving money and reputation . As a concept , bridge manufacturing comprises three different types : provisional solution , equivalent manufacturing solution , and ramp-up / phase-out bridging .
Provisional solutions
Well known in dentistry , this is where a transitional prosthesis – using a different material and a different technology – is provided as a makeshift solution while the actual prosthesis is manufactured . Requirements for a makeshift solution are often lesser than for the original , making bridge manufacturing a second-best alternative from a technological standpoint .
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