Conventionally, manufacturers used their own supply chains for production and distribution to customers.
But now, a new era of distributed manufacturing is emerging. Businesses are moving from provisioning their own plants and machinery to using other peoples' equipment or even the customer's own machines to produce parts on-demand.
Global supply chains have gotten used to "Supply side" manufacturing. Products are made in factories the manufacturer doesn't own then transported thousands of miles 2 warehouses in domestic markets, to supply why retailers and fulfil customer orders directly.
In contrast, "demand side manufacturing" manufactures with a customer's direct input. Instead of manufacturing products in international supply chains and transporting it, accumulating costs, risks, emissions and delay, products are made in customer production units. Supplied by a service provider of those units. Removing the transportation step altogether!
"Demand-side manufacturing has a major advantage" said Ethar Alali our CEO "it is done locally, close to the user or customer, which leads to less waste and fewer carbon emissions transporting goods around the globe for months before they reach their destination."
Another key element of demand-side manufacturing is that it is done locally, close to the user or customer, which leads to both less waste being produced and fewer carbon emissions related to transporting goods around the globe for months before they reach their destination.
Manufacturing closer to customers can lead to more business opportunities. Logistics firms are natural service providers for this new industry. Offering conventional product manufacturers a way to teleport products throughout their virtual factory network in much the same way dark kitchens were key to the growth of hospitality during the pandemic. Instead of killing an industry, logistics can embrace it and become the catalyst for the decarbonisation of the supply chain.
This brings with it wider economic benefits. By returning jobs too long forgotten areas, financial and social inclusion on top of economic growth. It's also key to a green recovery. Climate changes front and centre of economic recovery, using lower energy use and costs as a conduit.
"Demand-side manufacturing could have a significant impact on world trade." continues Ethar "it could completely upend our existing multinational supply chains and global trade patterns to create a more localized system that would rely less on cross-border commerce and more on production in domestic markets."
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