You may have heard a lot of buzz about distributed or decentralized manufacturing lately, but what exactly is it? With a traditional manufacturing model, manufacturers produce large batches of products at a single facility before distributing them or storing them in warehouses. With a distributed manufacturing model, manufacturers instead spread out production across several facilities, enabling them to produce products closer to their customers.

Flexible and scalable, distributed manufacturing uses a network of geographically dispersed manufacturing facilities that are linked by distributed manufacturing software to deliver products. By creating parts and products closer to the source of need, manufacturers can make the best use of their resources and stay competitive in today’s marketplace. Let’s explore why many manufacturing companies are making the switch to distributed manufacturing and unpack some of its key benefits.

Why companies are switching to distributed manufacturing

Companies typically turn to distributed manufacturing when faced with an expanding market or increased demand. However, new market conditions – including responses to the coronavirus pandemic, supply chain concerns, and pressure to reduce costs – have motivated companies to accelerate the switch to distributed manufacturing.

COVID-19 changed everything, including the way companies manufacture and distribute products. During the pandemic, there have been a variety of supply chain issues due to travel bans and delivery difficulties, and many manufacturers have found themselves unprepared for sudden changes. If your single supply chain fails or you suddenly have restricted access to your main factory due to travel bans, all of your operations come to a grinding halt.

Distributing your manufacturing needs across several factories in different locations will significantly reduce these risks. By turning to a decentralized production model, your supply chain can more easily adapt to new circumstances and shortages, giving you the options you need to maintain stable production in a changing world.

The benefits of decentralized manufacturing

With all the benefits distributed manufacturing has to offer, it’s no surprise that companies are embracing decentralized manufacturing strategies. Here are some of the biggest benefits of distributed manufacturing:

• Faster turnaround times: Decentralized manufacturing can reduce the time between production and sale. Making products closer to their point of need creates shorter supply chains and shipping times, and you’ll be able to deliver parts to your customers faster.
• Lower production costs: With traditional manufacturing, it’s most cost-effective to manufacture parts in bulk. With a distributed approach, lower shipping costs, minimal tariffs, and decreased waste can help drive down costs even when producing at lower volumes.
• Improved sustainability: By shifting production to decentralized factories, your goods won’t have to travel as far to get to your customers, which can reduce your company’s carbon footprint. Lower-volume production – especially using methods like 3D printing – can also help decrease waste both in terms of part obsoletion from large order quantities and by producing minimal excess material waste during the manufacturing process.
• Greater flexibility: Distributed manufacturing makes your supply chain more agile. You can pivot quickly when multiple factories are equipped to make your parts with high quality standards and respond rapidly when circumstances beyond your control – like material shortages or trade route blockages – impact your products. Plus, taking local raw materials into account as you develop your distributed manufacturing strategy can reduce the need to import materials, further shortening your supply chain.

Join the distributed manufacturing movement

The distributed manufacturing model offers increased flexibility, faster turnaround, and more sustainable products. The many benefits of decentralized manufacturing make it more than worthwhile for most companies, and technology – like the build package in our Cloud Manufacturing Platform™ – makes it easier than ever to ensure standard quality and processes around the world.

At SyBridge Technologies, we’ve already tapped into the distributed manufacturing trend through our network of microfactories. Simply upload your parts for access to factories worldwide with rigorous quality assurance processes. When you partner with SyBridge Technologies, we provide the necessary technology and manufacturing expertise to produce your parts quickly and accurately in any of our microfactories. Contact us today to get started.

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Two key trends are driving the need for global manufacturing networks: the rise of the on-demand economy and a cross-industry paradigm shift toward global markets. The on-demand economy necessitates that companies optimize their supply chains for rapid fulfillment and delivery. It’s no longer enough to guarantee high-quality customer service and low shipping costs; the modern consumer demands a broader selection of products combined with free one- or two-day shipping.

This pressure is compounded by the astronomical growth of global markets. By 2025, global consumption is expected to reach $62 trillion and the consuming class — defined as people who have disposable incomes of at least $10 a day — will account for more than half of the world’s population. Established local markets are buckling under the on-demand economy, as consumers demand specialized products and services. For many consumer goods companies, retailers, and manufacturers, remaining financially viable means thinking — and operating — globally.

The benefits of a global manufacturing network

A global manufacturing or production network refers to the interconnected functions, operations, and transactions needed to bring a product from prototyping to final delivery. It’s closely related to complex supply chain management and well-suited for the on-demand manufacturing model.

Manufacturers don’t have to build their own global manufacturing network from scratch — they can still reap all of the benefits by finding a partner they can tap into. Here are the top three benefits of using a manufacturing partner that has a global manufacturing network.

1. Reduce production costs

The primary reason manufacturing companies take production overseas is to reduce overhead, production, and tooling costs. For example, while raw materials cost about the same in China as they do anywhere else in the world, manufacturers can offset material costs with China’s comparatively low labor costs. Business models in some foreign markets are more reliant on the volume of production than the cost of tooling; by making products in these markets, manufacturers can save significantly on tooling, which is typically one of the highest costs in any project.

2. Easily adapt to change

Consumption patterns evolve rapidly in an on-demand economy and unanticipated global events like COVID-19 can make negotiating supply chains and fluctuating market conditions even more challenging. Traditional manufacturing models are only effective for high-quantity orders–as volume increases, cost-per-part decreases. Also, in the midst of uncertain conditions, manufacturers struggle to effectively forecast demand, which leads to over or under production.

A global manufacturing network allows manufacturers to quickly pivot based on shifting needs and avoid costly guesswork. A diversified manufacturing network fortifies operations. Since resources are not centralized, an unanticipated change in one market or one part of the supply chain will not necessarily disrupt the whole system. With a distributed network, manufacturers can adapt more easily, provide high-quality products at lower costs, and meet their service-level requirements for lead times even in the face of unprecedented change.

3. Stay focused on innovation

When companies distribute manufacturing operations to partners with global networks, they free up resources to expand their businesses. International branches or third parties can handle critical responsibilities such as quality control while the regional branch of the network can focus on product development, marketing, and business development.

When product teams partner with a full-service manufacturing company like SyBridge Technologies, they streamline the product development life cycle because they need only manage one relationship (rather than an entire network of vendors). The manufacturing partner shoulders the multitude of challenges that come with doing business internationally.

By delegating key aspects of manufacturing and supply chain management to trusted partners, product teams have more free time to innovate. Furthermore, expanding abroad grants a company access to new technologies, new processes, and new streams of revenue.

Go global with SyBridge Technologies

Companies with global manufacturing networks are well-positioned to meet the demands of today’s on-demand economy. Overseas networks empower manufacturers to increase agility, boost productivity, reduce costs, and meet the challenges posed by a rapidly changing landscape.

At SyBridge, we have our finger on the pulse on what’s next in manufacturing because we have a constantly expanding global network at our disposal. We’re committed to producing high-quality parts at a competitive price, whether that’s in our additive factories in the United States or with one of our global partners. When you partner with us, our manufacturing network is your manufacturing network — you’ll have full access to the latest manufacturing capabilities across the globe. Contact us today to learn more.

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