Sustainable production in a circular economy: A business model for re-distributed manufacturing

Abstract

The emergence of new technologies such as the Internet of Things, big data, and advanced robotics, together with risks such as climate change, rising labour costs, and a fluctuating economy, are challenging the current UK manufacturing model. In this paper, business models for re-distributed manufacture (RdM) are developed using anIDEF (Icam DEFinition for Function Modelling) description to serve as a guide for the implementation of the RdM concept in the consumer goods industry. This paper explores the viability of a re-distributed business model for manufacturers employing new manufacturing technologies such as additive manufacturing or three-dimensional (3D) printing, as part of a sustainable and circular production and consumption system. An As-Is value chain model is presented alongside the proposed new business model for a sustainable re-distributed manufacturing system. Both are illustrated via a case study drawn from the shoe manufacturing industry. The case study shows that there is a need for robust facilities in close proximity to the customer. These facilities are store fronts which can also manufacture, remanufacture, and provide services. The reduction in transportation and increase in customer involvement throughout the process are the main benefits that would accrue if a re-distributed model is implemented in the given industry.