Business Models for Additive Manufacturing: A Strategic View from a Procurement Perspective

Abstract

Additive Manufacturing (AM) is an emerging manufacturing method that possesses great potential for new product designs and improved product performance. Thus, a production strategy has to assess how to use AM. However, production requires supply; thus, this work adds a strategic view from a procurement perspective to the AM discussion. This work distinguishes several procurement scenarios for AM. These scenarios are based on the distinction of internal, hybrid or external production designs. A change in the manufacturing method towards AM in pure in-house or pure external production models will trigger existing procurement tasks within a new context and with new content. For example, in-house production triggers the procurement processes for investment goods (printers) and commodities (powder). External production triggers the procurement process for finished products. The most complex scenarios are hybrid ones in which new procurement tasks emerge, e.g., orchestrating the input or developing an AM-strategy and architecture. Furthermore, new or changed business models emerge, e.g., Data-Model Generators, 3D-Model Marketplaces, 3D-Printing Capacity Sharing Platforms, License Supervisors, Powder Marketplaces, 3D-Printing Integrators, etc. Overall, this work conceptualizes the new procurement arena in terms of new or existing tasks and new or existing business models. The findings show that the role of procurement as the central intersection to upstream supply markets is becoming even more important. Decisions relating to AM design structure/architecture (centralization/decentralization, in-outsourcing, open/closed data access, and capacity sharing) have strategic impacts. Thus, this research provides theoretical and practical guidance on how the procurement function may develop concerning new AM business models.