Is Artificial Intelligence the Secret to Closing Supply Chain Gaps?
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Over the last few years, the supply chain has become a budding topic of everyday conversation. Whether it was a pickle jar shortage that slowed Burger King’s chicken sandwich release, the semiconductor chip deficit that impacted everything from smartphones to automobiles, or a lack of bread and butter at the holiday dinner table, supply chain strains have impacted individuals across the country and nearly every industry.
While artificial intelligence (AI) isn’t a new concept, industry turned to AI as a stopgap amid the pandemic because it could boost efficiency and improve processes. In fact, the AI market is set to grow at a compound annual growth rate (CAGR) of 38% through 2030.
In addition to helping businesses guard against future supply chain disruptions, Xometry, a digital manufacturing marketplace, is using AI to match manufacturers with hard-to-find parts in seconds and empowering manufacturers to grow their businesses. Greg Paulsen, Xometry’s director of application engineering, explained that it’s “a digital interface that can help scale up and give access to tens of thousands of capable manufacturers, all with a click of a mouse.”
In the latest episode of the Thomas Industry Podcast, Thomas’ Vice President of Platform Growth and Engagement Cathy Ma spoke with Paulsen about how AI powers Xometry’s marketplace to help businesses close supply chain gaps.
How Xometry Uses AI to Close Supply Chain Gaps
Many small and large manufacturers are still using machines that are decades old, and it’s common for them to run into issues sourcing a key part to keep equipment running. And even if manufacturers do find a replacement part, it’s not always possible to order just one or two of them.
“It’s that maintenance quantity that manufacturers don’t always have, and sometimes the technical information isn’t always complete,” Paulsen said.
That’s where Xometry comes in with its on-demand production capabilities, no minimum, and Rolodex of capable suppliers. The AI Xometry uses for its marketplace sifts through thousands of manufacturers in its database to find the best option for a specific buyer.
“I live vicariously through our customers and our team,” Paulsen said. “We're becoming miracle workers for a lot of what their needs are.”
Xometry has a database of more than 10,000 vetted domestic and international suppliers. When a machinist, manufacturer, or entrepreneur submits a 3D model, they get an instant quote with lead times. Using its AI-powered ranking system, Xometry matches the part with a machine shop that has completed similar parts. These shops have a wide range of capabilities, including CNC machining, injection molding, 3D printing, and laser cutting.
“As soon as we can quote, we can make,” Paulsen said of Xometry’s digital marketplace. “The second that [we get] a quote, we know that we have capable manufacturers: we have the data as an AI-driven company, and we're able to understand and build those predictions in place.”
“That’s something that’s really powerful for teams that are used to very long lead times,” he added.
To ensure every part is made correctly and doesn’t bottleneck supply chains, the configuration process includes an analysis feature that runs an instant design for manufacturability (DFM) check. This highlights potential problem areas before a shop is assigned to make the part.
As an AI-driven company, Xometry leverages its ability to work across diminishing supply chains to close gaps in the market for businesses. “We’re behind the scenes on a lot of OEM equipment being made because [manufacturers] have to make their devices somehow, and they need a secure supply chain,” Paulsen said.
Major automotive manufacturers like BMW have turned to Xometry for production solutions, and 3D printer maker Nexa3D consolidated its supply chain by producing 85% of the parts for its XiP desktop printer using the digital marketplace.
Xometry has also given suppliers the opportunity to get work on demand that fits their shop’s capabilities. Paulsen added that Xometry is more than a website: the company is full of “grizzled veterans in all industries.”
“We’re excited to work with anybody, big or small, that has big ideas they want to bring to life,” he said.
Listen to the Full Episode
The full episode of the Thomas Industry Podcast explores Xometry’s “behind-the-scenes” work with companies like BMW and Nexa 3D and how Paulsen found a career in additive manufacturing. You can listen to the 20-minute episode on the streaming platforms below.
Image Credit: Gorodenkoff / Shutterstock.com
