Impact of Raw Material Commoditization on Supply Chains

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Khajavi, S.H.
Deng, G.
Holmström, J.
Puukko, P.

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University of Texas at Austin


In this research we analyze the impact of a less cost intensive raw material supply chain on the utilization of additive manufacturing (AM) and its implications for the whole production supply chain. Utilizing the case data and scenario modeling we compared the competitiveness of additive manufacturing in comparison to conventional methods such as machining and casting. Results illustrated the increased production competitiveness with regard to both conventional methods. Moreover, we found simplicity and swiftness of supply chain as the two significant changes that occur as the result of a new raw material supply. One of the major limitations of this research was due to the secrecy of the companies which are currently utilizing the technology and their reluctance to share their perceived competitive advantage for the analysis. Therefore, the data extracted from our own case simulations which then were analyzed to compare the supply chains. Future research should expand the number of cases and utilize more suitable AM machines.


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