Virtual warehousing through digitalized inventory and on-demand manufacturing: A case study

Abstract

Novel digital on-demand manufacturing technologies provide a significant opportunity to support development of virtual warehousing and in turn improve supply chain performance. However, the implementation of virtual warehouse comes with a set of challenges, especially where the objective is to virtually warehouse standard or legacy parts that have been developed and verified initially for conventional (non-digital) manufacturing. In this paper, we explore the key elements required for successful implementation of a virtual warehouse for legacy parts based on a combination of part digitalization, on-demand manufacturing, and part validation. Our proposed framework for adoption of virtual warehouse includes development of a digital inventory which includes supply chain and manufacturability data, identification, and selection of suitable parts for on-demand manufacturing, selection of on-demand manufacturing technology, fit-for-purpose validation of the parts. Our framework is exemplified through a case study, and we conclude that the building of an effective virtual warehouse requires several enablers, including availability of digital data about technical and supply chain characteristics of parts, but also a suitable part identification tool. This part identification tool needs to be flexible to include comparison with reference parts already produced by different on-demand manufacturing technologies.