Distributed Manufacturing: Leveraging Global Market Development to Deliver Local Manufacturing Needs

Modern manufacturing is undergoing a transformation and traditional epicenters of industrial activity are being replaced with new locations in Brazil, India Korea, Poland and Thailand. These shifts are being driven by ever-increasing energy needs, tax breaks and the demand for a bigger and more economical talent pool.

Production processes are also moving towards a more flexible model, incorporating lean and just-in-time production methodologies that pull in resources to be used when needed. New disruptions are on the horizon in the form of digital platforms that achieve economies of scale in new ways and the Internet of Things (IIoT) that transform today’s objects into smart systems.

This is the new marketplace: Highly flexible, customizable and resource-efficient. To get ahead, manufacturers must shift towards new ways of thinking and working. By integrating these innovative technologies into existing product development processes, they can transition from centralized production to a model centered on the end user.

This is where distributed manufacturing plays an integral role.

By shifting to a decentralized manufacturing model, distributed manufacturing removes the need to predict demand and hold on to extensive inventories. Manufacturers can leverage modern innovations such as additive manufacturing (also known as 3D printing), robotics and the IIoT to develop goods at a competitive cost and scale.

Distributed manufacturing also flips the norm on the established functionality of supply chains by changing the business value of the end product. Instead of being the traditional endpoint of the manufacturing pipeline, finished products now become the means of delivering a personalized customer experience — and a stronger incentive for manufacturers to continue the product innovation process. This not only guarantees continuous service and increased revenue but also ensures consistent delivery levels and satisfied customers.

Distributed manufacturing, with its data-driven approach and decentralized production model, can offer manufacturers greater flexibility and agility to produce and deliver customized goods at the point of demand.

As a result, manufacturers can implement mass personalization to create products that appeal to local or regional tastes and preferences. Consumers can also take a more active role in the product development process by engaging in the creation of the products they will end up buying, shifting their identity from passive recipient to active participant.

Another benefit of this shift in the production line is an overall reduction in shipping costs and environmental footprint. This can streamline the product development process, reduce the reliance on specific suppliers and lessen the impact of possible bottlenecks in the supply chain.

Distributed manufacturing is powered by the real-time flow of information. Unfortunately, many companies still run on legacy planning systems that collect manually inputted data on spreadsheets and upload it to siloed databases long after it is needed. This hinders smooth, effective enterprise-wide planning for manufacturers.

The transition to a new manufacturing model presents two challenges for manufacturers. They must:

• Find a way to streamline and automate data collection
• Make data instantly actionable to all stakeholders within the organization and across the supply chain

With Dassault Systèmes’ 3DEXPERIENCE platform, manufacturers will be able to collect, consolidate and aggregate information across multiple databases and ERP systems. This results in clean data that can be used to get an accurate view of customer orders and inventory.

Additionally, the 3DEXPERIENCE platform also gives all relevant stakeholders complete visibility of all on-site operations such as general ledgers, locations, inventories, currencies, languages, financial reporting, purchasing, order entry and invoicing.

The future of distributed manufacturing will merge global development processes and technologies that address and serve hyper-local needs. Fortunately, manufacturers can streamline that transition and secure a lasting competitive advantage without compromising on control or visibility of their operations — with the 3DEXPERIENCE platform.