Fragmented factoring part 3
Imagine the concept of a cluster of manufacturing companies without the frames of today. No given production, or special relationships, producing what’s ordered for that special set of time.
Many companies have developed into pure R & D and design companies focusing on branding and customer customization. The wall between amateur and professional has been thinned down to the point that the user can order production and material streams with a little help to create new products.
The concept of buying something has evolved into meaning buying one production cycle of a product. For instance the shoe store will still exist as an experience platform with different business models in one. Test and buy stock shoes, order customized products and recycle your old products.
The big difference is the grander concept about supply chains. When someone in Madrid orders a Volvo, he or she orders the rights for one production cycle in Madrid, with the local automotive supply chains taking care of the materials needed.
To start a small business all you have to do is to study the production stock billboard and try to identify any bottlenecks and then order that type of machinery and link up to the system.
It may sound utopist to claim that a model might work but the technology is already used, it’s just the process of linking the system together that is the big task.
For example; raw material- How are we going to feed such a system? New material is going to be needed in the future, but much less of it due to better management and recycling. For example new techniques in steel production makes it possible to create a closed loop In metal recycling
Nucors Mini Mills Has been around since the 60’s, making it profitable to smelt down scrap to concrete reinforcing bars close to the consumer using electric arc furnaces. The technology is becoming so advanced that they now can produce high quality alloys that the industry requires. The mills are easy to start and stop, making it possible to produce on demand.
The car is scrapped, recycled, melted and fed directly into the material flow of the city.
Truly creating a closed supply chain and providing new broadened value to all participants.
