Retailer-Dominant Supply Chains Disrupt High-End Chocolate Markets with 3D Printing

Why It Matters

This insight highlights how new manufacturing technologies can fundamentally alter established market dynamics. Designers and businesses should consider how supply chain structures, enabled by advanced production methods, can create competitive advantages and disrupt existing market leaders.

Key Finding

3D chocolate printing allows for new business models where retailers can gain significant advantage, potentially disrupting premium chocolate markets, while manufacturer-focused models benefit the manufacturer more than the retailer.

Key Findings

• The retailer-dominant supply chain model is a potentially disruptive business model innovation enabled by 3D food printing technology.
• The retailer-dominant model may pose a challenge to traditional high-end chocolate products.
• The manufacturer-dominant model leads to increased manufacturer profits, while retailer profits remain stagnant.

Research Evidence

Aim: To evaluate the financial viability of supply-chain centric business models for 3D printed chocolates.

Method: Simulation study

Procedure: Two business models for 3D printed chocolate supply chains were developed and their financial viability was assessed using computer modelling and simulation, based on a UK-based 3D chocolate printing technology provider.

Context: Food manufacturing and retail, specifically 3D chocolate printing.

Design Principle

Technological advancements in production can redefine value chains and competitive landscapes.

How to Apply

When developing new product lines or entering new markets, consider how technologies like 3D printing can enable novel supply chain configurations that offer unique value propositions.

Limitations

The study is based on a simulation and a specific UK-based provider, so real-world implementation may vary.

Student Guide (IB Design Technology)

Simple Explanation: 3D printing chocolate can change how chocolate is sold, making it easier for shops to offer unique, personalized chocolates that compete with fancy brands.

Why This Matters: Understanding how technology impacts business models and supply chains is crucial for designing successful products and businesses.

Critical Thinking: To what extent can the disruption observed in the chocolate industry be generalized to other consumer goods sectors utilizing similar additive manufacturing technologies?

IA-Ready Paragraph: This research demonstrates that advancements in manufacturing, such as 3D printing, can enable disruptive supply chain business models. For instance, a retailer-dominant model for 3D printed chocolates was found to potentially challenge traditional high-end products, suggesting that designers should consider how production technology can reshape market dynamics and create new competitive advantages.

Project Tips

• When researching a new product, think about who controls the supply chain and how technology might shift that power.
• Consider how customization enabled by new tech can create new business opportunities.

How to Use in IA

• Use this study to justify exploring innovative supply chain models enabled by new manufacturing technologies in your design project.

Examiner Tips

• Demonstrate an understanding of how technological innovation can lead to disruptive business models.
• Analyze the potential impact of your design on the entire value chain, not just the end product.

Independent Variable: ["Supply chain model (retailer-dominant vs. manufacturer-dominant)","3D chocolate printing technology"]

Dependent Variable: ["Financial viability","Profitability of supply chain constituents","Market challenge to traditional products"]

Controlled Variables: ["Commercialization efforts of a specific company (Choc Edge)","UK market context"]

Strengths

• Utilizes simulation to test business models before real-world investment.
• Focuses on a specific, innovative technology (3D chocolate printing).

Critical Questions

• What are the ethical implications of disruptive business models on existing market players?
• How might consumer acceptance and adoption rates influence the success of these new models?

Extended Essay Application

• Investigate the economic feasibility of a custom manufacturing process for a niche product, simulating different supply chain configurations and their impact on profitability.

Source

Investigating the feasibility of supply chain-centric business models in 3D chocolate printing: a simulation study · 'Elsevier BV' · 2016 · 10.1016/j.techfore.2015.07.026