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7 Benefits of Digital Warehousing

Blog 3YOURMIND | June 27, 2023 | 5 min read

Want to learn more about digital warehousing? In this article explore seven benefits of this cutting-edge technology.

In today's rapidly evolving business landscape, supply chain managers continually seek innovative ways to optimize operations, reduce costs, and drive efficiency. One such avenue that holds immense potential is the integration of digital warehouses into the supply chain via additive manufacturing. This transformative industry 4.0 technology streamlines not only traditional warehousing processes but also offers significant opportunities for generating substantial savings.

In this blog, we'll share insights on how companies can harness the power of additive manufacturing to create digital warehouses that optimize procurement processes and drive cost savings.

What is a Digital Warehouse?

A digital warehouse, also known as a smart warehouse or warehouse 4.0, is a concept that refers to the integration of advanced technologies and digital systems within a traditional warehouse environment. It uses cutting-edge industry 4.0 technologies such as automation, robotics, Internet of Things (IoT) devices, artificial intelligence (AI), and data analytics to optimize warehouse operations and enhance efficiency.

What Does Additive Manufacturing Relate to Digital Warehousing?

Additive manufacturing, also known as 3D printing, plays a significant role in the concept of digital warehousing. Additive manufacturing technology enables the on-demand production of goods by building them layer by layer using digital design files. When integrated into a digital warehouse, additive manufacturing offers several benefits contributing to cost savings and operational efficiencies.

Here are just a few ways additive manufacturing supports digital warehousing:

On-Demand Production:

Additive manufacturing allows companies to produce goods as needed, eliminating the need for large inventories of finished goods. With digital design files stored in the warehouse's system, products can be via on-demand manufacturing, reducing storage costs and minimizing the risk of obsolescence.

3yourmind supply chain and digital inventory

Digital Inventories:

By leveraging additive manufacturing, digital warehouses can create digital inventories of products. Instead of physically storing finished goods, companies can maintain digital files of product designs. When an order is received, the digital design file is retrieved and used to manufacture the product using additive manufacturing technology. This approach reduces the need for physical storage space and associated costs.

7 Benefits of Digital Warehousing

Redefines Inventory Management:

Digital warehouses powered by additive manufacturing allow companies to redefine their approach to inventory management. With AM, physical stockpiling of finished goods becomes unnecessary. Instead, companies can maintain a digital inventory of 3D design files, enabling on-demand production. By reducing inventory holding costs, eliminating obsolescence risks, and minimizing stockouts, companies can achieve significant cost savings.

Streamlines Supply Chains:

Digital warehouses enable companies to establish a distributed manufacturing network, which helps streamline their supply chains. By strategically locating AM production facilities closer to demand centers, companies can reduce transportation costs, shorten lead times, and minimize the carbon footprint associated with long-distance shipping. This decentralized approach also enhances agility, allowing for faster response to market demands and reducing the risk of supply disruptions.

Enables Just-in-Time Manufacturing:

Additive manufacturing's ability to produce on demand allows companies to adopt a just-in-time (JIT) manufacturing approach. Rather than holding large inventories of finished goods, companies can manufacture products as needed. JIT manufacturing not only minimizes storage costs but also reduces the risk of product obsolescence and enables rapid customization, catering to unique customer requirements while maintaining cost efficiencies.


Supports Cost-Effective Prototyping and Product Development:

Additive manufacturing is widely recognized for its rapid prototyping capabilities. By utilizing AM technology within the digital warehouse, companies can significantly reduce costs and time associated with traditional prototyping methods. The ability to quickly produce and test prototypes in-house facilitates iterative product development, accelerates time-to-market, and ultimately saves costs by reducing design flaws and minimizing expensive design changes in later stages of production.

Simplifies Spare Parts and Maintenance:

One of the most promising areas for cost savings within digital warehouses is spare parts management and maintenance. Additive manufacturing enables companies to produce spare parts on demand, eliminating the need for large inventories or lengthy lead times associated with traditional procurement. This approach is particularly beneficial to address part obsolescence because it reduces stockholding costs, minimizes equipment downtime, and ensures a seamless maintenance process, resulting in increased operational efficiency and cost savings.

Consolidates Supplier Capabilities:

Digital warehouses powered by additive manufacturing offer an opportunity for supplier consolidation via digital inventories. By collaborating with key suppliers to obtain 3D design files and leveraging their AM capabilities, companies can reduce the number of physical suppliers, streamline procurement processes, and create virtual inventories. This consolidation enhances cost savings, improves supplier relationships, and facilitates better demand forecasting.

Promotes Sustainability and Waste Reduction:

Additive manufacturing inherently promotes sustainability and waste reduction. By transitioning to a digital warehouse with AM capabilities, companies can significantly reduce material waste, energy consumption, and carbon emissions associated with traditional manufacturing and warehousing practices. This sustainability focus not only aligns with corporate social responsibility goals but also contributes to long-term cost savings and operational efficiency.

Watch: How to Create a Digital Warehouse in the Railway Industry

Additive manufacturing has the power to transform traditional warehouses into digital warehouses. By leveraging additive manufacturing to build digital inventories and, thus, digital warehouses, companies can drive cost savings, enhance operational efficiency, and unlock the benefits of this transformative technology.

In this episode of 3D Talk Show, learn how some of the largest rolling stock manufacturers overcome challenges when switching from traditional to on-demand manufacturing.

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