I receive many pitches every day. Many just don’t fit my interests. How could I pass up this one? “Just as Airbnb helps millions of people around the world instantly find a great place to stay for the night. What if car makers could use a similar model to easily order and manufacture lightweight 3D printed parts?”
So, I bit. And wound up with an interview with CEO of Xponential Works/Vice Chairman of Techniplas Prime Avi Reichental. His LinkedIn bio includes “parallel entrepreneur, board director, futurist, venturist, inventor, philanthropist”. He’s a busy guy. Wonder how he found time to chat with me.
In short, what is a supplier to do when it needs extra capacity but its capital assets are expensive—as in a large injection molding machine? On the other hand, what if you are a small supplier and have trouble landing consistent, long-term contracts leaving you with excess capacity?
Using digital technologies for communication, design, production, and quality, the two companies can link. The larger company with long-term contracts and capacity needs forges an agreement to “rent” the machines of the smaller company.
Geography becomes a second benefit. OEMs like having suppliers close to the plant. The Tier 1 has the flexibility to find a partner within desired range of the customer’s plant and use digital technology to send drawings, production orders, and other required documentation to the new remote plant.
As Reichental explained, “We have factories, associates, platforms, quality management systems, and brand recognition. Our problem is how to become agile and deliver on-time plus expanding our sales. We’re in a capital intensive industry. The answer was to extend to a group of smaller companies who don’t have the systems required by the OEMs but they have assets. We have created the equivalent of one additional factory per year by adding partnerships with these smaller companies shipping the equivalent of 1,000 tractor-trailers of product per month. Plus we now have the advantage of localizing production to the customer.”
Not stopping with injection molding, Reichental and his team have extensive additive manufacturing (3D printing) expertise. He adds, “Now we are layering additive/3D printing capabilities. Now there can be one-click to request, upload, get instant quote, through the cloud, process the order, get the manufacturing design, delivered physically by approved supplier with approved supply chain.”
Techniplas Prime has introduced a new approach to its e-manufacturing that is enabling the production of 40 million parts per year for BMW, Daimler, Ford, and other top auto manufacturers, or the equivalent of 1,000 truckloads of car parts per month, without the need to open a single new factory.
Five years in operation, it has revenues above $80 million out of parent company’s $500 million and is the fastest growing segment of the company. They proved it out internally before going out to 3rd parties. OEMs want to work with fewer suppliers. Techniplas Prime serves as aggregator for many suppliers so that OEM only needs to interact with it.
XponentialWorks is a venture investment, corporate advisory and product development company, specializing in artificial intelligence, digital manufacturing, 3D printing, robotics, and the digital transformation of traditional businesses. As a curator of leaders in Industry 4.0, the firm has built a unique ecosystem that unites the forces of early-stage companies with the experience and deep market knowledge of mature companies. XponentialWorks invests in and mentors the growth and success of promising early stage companies and acts as an edge organization for the benefit of larger, mid-market companies undertaking digital transformation.
Reichental concludes, “In the end, business innovation is more important than technology innovation.”