Amazon.com Inc.’s AMZN drone delivery program may be grounded for lack of federal approval, but it seems that the e-tailer has other plans to speed up delivery times – like offering 3D printed merchandise on demand.
Some patent applications recently filed by Amazon reveal that the company plans to employ a ground fleet of delivery trucks equipped with 3D printers.
How it Works
The patent outlines a service where customers can order items that can be remotely fabricated and shipped by Amazon or 3D printed by a mobile unit that will deliver the product directly to the customer. For instance, a client can order car replacement parts through the website, which will be delivered by Amazon on the same day, without having to stock the inventory, which could involve delays and costs.
For 3D printing, product schematics are fed into a machine that squeezes out heated plastic or other material in complicated patterns, which are then transformed into the desired products. Amazon ventured into the realm of 3D-printing last year when it collaborated with Mixee Labs to deliver 3D-printed goods.
The online retail giant’s shot at removing warehouses from the equation definitely has huge ramifications. In addition to better service and inventory management, cost savings and dramatically faster delivery times, the technology has the potential to exponentially increase product offerings. In fact, theoretically, the days of out-of-stock or no-longer-manufactured products would be over.
Boon for the 3D Printing Industry?
Amazon’s plans have huge implications for leading 3D printing companies like 3D Systems Corp. DDD and Stratasys Ltd. SSYS. 3D printing technology generated immense enthusiasm in 2013 and stocks charted huge gains, captivating people with wide-ranging speculations about extensive applications of 3D printing. However, since 2014, these stocks have been in troubled waters as the huge costs and complexities involved in the technology came into sight.
However, in a recent research report, PricewaterhouseCoopers predicted that 3D printing technologies will take giant strides in the coming three to five years. Importantly, Hewlett-Packard Co. HPQ is planning a re-entry into the market, with its revolutionary 3D printing technology named Multi Jet Fusion. It seems that the troubled 3D industry is on the verge of transformation, and Hewlett-Packard's and Amazon’s initiatives might just act as catalysts for the company.
Per experts, the revolutionary idea of 3D printing and "parts on demand" are likely to become a common theme with physical retailers in the future.
Amazon’s Out-of-the-Box Ideas
Amazon has always displayed a flair for proposing extraordinary delivery models to overcome its logistics constraints. In late 2013, Amazon received a patent for “anticipatory delivery,” a system which would start delivering products before customers even entered the “buy” command. Last year, the company experimented with the idea of unmanned drone delivery vehicles that promised delivery within 30 minutes, though the idea has been thwarted by the Federal Aviation Administration for now.
Amazon’s latest 3D printing project may never see the light of day, just like its idea of ‘anticipatory deliveries’. However, if it does, it could revolutionize logistics in the online retail industry.
Amazon presently holds a Zacks Rank #4 (Sell).
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