10 Supply Chain predictions you wish to know before 2018 starts

Over the past years, the supply chain has undergone numerous changes while trying to keep up with constantly growing customer expectations. While organizations have to provide excellent customer service, they also have to deal with cost and waste, time and all the unexpected potential events and factors. As a result, the pressure on the worldwide supply chain is quite intense.

Current supply chain designs are mainly intended for improving on-shelf availability and reducing cost. In the future, the industry is expected to shape supply chain to serve consumers in a sustainable way. The digitalization era requires companies to rethink the way they design their supply chain.

The future of supply chain management is entering a new phase of progressing towards achieving a greater level of product diversity and excellent customer commitment at the lowest cost, while embarrassing the new technology. At the same time, supply chains are expected to become much faster and much more precise.

The big question is: What will be the future and what elements will impact supply chains?

What have we learned from Supply Chain in the last years?

Recently, companies are digitalizing their supply chain while there has been a growth in the use of industrial robots in manufacturing. Big companies such as Amazon, Toyota, and Tesla have already started using robots and they are making a bigger step into supply chain. Nowadays, digital logistics networks not only help the warehouse but also customers to track location with digital logistics networks, while it is easier to control and manage the risks and performance of deliveries flowing between their locations. Leaders are now adopting solutions that combine Internet of Things (IoT) sensors, cloud computing, virtual and augmented reality and 3D printing. The digital pieces of the supply chain puzzle are coming together.

Interrelated with keeping up with new technologies is the ability of organizations to be more adaptive towards changes. More precisely, companies are now more effective and sophisticated when it comes to delivering services and goods. 

Environmental sustainability was another priority for supply chain during the last years. Sustainability is becoming a key factor and organizations are realizing that supply chain success depends on the healthy ecosystems around them. For example, Germany and the Netherlands are leading the way with investments in green transportation.

Based on lessons learned from the past years, we can assure that the future supply chain is expected to deliver benefits for the society, industries and companies, and most importantly for consumers.

What do we expect from the supply chain in 2018 and beyond? 

Not very often, expectations turn out the way we expect them to, unless they are toughened by experience. In order to be able to gain a glimpse into what is to come, we have chosen 10 top predictions based on International Data Corporation (IDC) studies.

Prediction 1: By the end of 2018, the B2B commerce networks will be used by 90% of supply chains in the manufacturing industry, by thus dominating as a collaboration tool for demand, supply, service, and new product development.

Prediction 2: By 2018, technology-enabled risk and resiliency capabilities will become a key component of value for 75% of manufacturing supply chains.

Prediction 3:  To extend the Integrated Planning Process throughout the entire enterprise in real time, 50% of the manufactories will be using analytics, Internet of Things (IoT) and social collaboration tools by the end of 2018.

Prediction 4: The manufacturing supply chain productivity and efficiency will increase up to 30% by using the sensors (IoT) for real-time information sharing across organizational boundaries by the end of 2019.

Prediction 5: By 2019, robots will be in use in 50% of fulfillment centers, lowering thus the cost of operations and advancing productivity up to 30%. This phenomenon will also increase shortage of labor.

Prediction 6: By 2019, with the help of cloud-based crowdsourcing, virtual reality, and product virtualization, 50% of manufacturers will be cooperating directly with customers concerning new and improved product designs.

Prediction 7: By 2020, one-third of manufacturers will expand smart postponement techniques and additive (3D) manufacturing. Thus, delivery latency will be reduced by up to 50%.

Prediction 8: By 2020, 80% of supply chain interactions will take place across cloud-based commerce networks. This change will improve resiliency and at the same time shrink the impact of supply disruptions by up to one-third.

Prediction 9: By 2021, 20% of G2000 manufacturers will use the IoT, the blockchain, and cognitive which will speed execution times by up to 25%. This will be done in order to automate the large scale processes. 

Prediction 10: It is expected that by 2021, 1/3 of manufacturers will use blockchain in anticipation of regulatory changes to track goods which will result in improving the quality of delivered products by up to 20%.

In the upcoming years, technology will revise supply chain organizations. Even though the above-mentioned predictions cover a term of 4 years, the influence will be sensed in a long term.

PECB helps you be prepared for what comes next by providing training and certification services for ISO 28000. For more information, please visit: https://pecb.com/en/education-and-certification-for-individuals/iso-28000

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