This activity presents a case study of a fictitious 3D printer and printer cartridge company called 3DMall. 3DMall has a patent on proprietary 3D printing technology and has decided to sell its novel, user-friendly 3D printers and cartridges to consumers. The unique benefit to using 3DMall printers is that consumers do not have to design their own products by using complex scanning and design programs that require a certain level of technological expertise. Instead, they can choose to immediately print ready-made designs they find in 3DMall's online store.

The designs in 3DMall's store are provided by third-party organizations who submit these to 3DMall for sale. 3DMall hosts the designs, and consumers can browse and purchase them via an app or 3DMall's store website. When a consumer purchases a design through the 3DMall store, they are purchasing a one-time-use design from a third party and using it to print the item immediately with their own printer. 3DMall receives a percentage of every purchase made in the store. Once a consumer has purchased a design and uses it, the design automatically deletes itself from their printer.

Read the case study below and answer the questions that follow. At the end of the activity, the instructor will review the steps of the activity and share the correct answers for each question. This case study will be revisited in later activities.

Case Study Information

3DMall's printer cartridges have three materials of varying hardness: one is rubbery, one is flexible plastic, and a third is a hard, durable resin. Items can be produced using multiple combinations of materials. Most designs are difficult to scan and reproduce because these various materials are used in different parts of the design. Cartridge sales are a high-margin item, while the printers have a low margin.

Due to lower costs, the printers and the cartridges are currently being produced at a third-party plant in Thailand, and the products are initially being marketed in the U.S. and the EU. The organization's suppliers are primarily in Thailand as well. The printers vary in size and features, but the same patented printer engine is used in each model. All printers use the same set of cartridges. The organization owns its headquarters and all of its regional distribution centers (DCs).

Demand for 3DMall's printers and cartridges will initially be driven by consumers with little technology expertise, as the devices are fully automated and self-explanatory and can be controlled through a simple interface via app or website. When enough items are available for sale in the marketplace, this should generate a critical mass of demand for the printers because the products they can make will be inexpensive and available immediately.

In launching this new line of printers and cartridges, 3DMall will sell them online, at third-party retailers, and through independent franchise stores. The organization expects demand to ramp up over time as their marketing message gains acceptance and as more third-party organizations start offering additional designs in the store. Currently a shoe seller and an art seller are among the vendors. For the initial few years, 3DMall expects demand to be highly variable both in total and by region.

The organization decides to start with a large order of each printer model and a large order of cartridges. This should minimize production cost through high capacity utilization and minimize transportation costs to the regional DCs by contracting with carriers to deliver full container loads. The amount sent to each DC and retailer is based on a strategic forecast since it is a new product line. Going forward, each will replenish inventory based on actual sales and their own predictions of demand during the lead time required for replenishment. Lead time is two weeks between each stage in the supply chain.

What is 3DMall's business model?

What is 3DMall's generic business strategy?

What supply chain strategy would best help 3DMall become profitable faster?

What advantage is 3DMall leveraging to form its core capabilities?