This blog highlights top 10 worldwide supply chain technology predictions for enterprise executives that will be impacting their businesses through 2021.
2018 will be a year of transition for the supply chain as old analog processes give way to new, digital ones. Digital transformation (DX) is the key overriding theme in our worldwide supply chain top 10 predictions for 2018, including the impact for supply chain planning, supply chain execution/fulfillment, procurement, and supply chain security. While the predictions offered here largely focus on the near term to midterm (2018–2020), the impact of many of these predictions will be felt for years to come. Most of our predictions refer to a continuum of change within the wider ecosystem of the supply chain industry and global economy.
The supply chain is undergoing unparalleled levels of change. The older measures; productivity, quality, andservice still apply, but we now see the specter of digital transformation poised to change everything. Whether it is the way that manufacturers and retailers plan, procure, or fulfil, digital transformation is both opening up new opportunities, and presenting new challenges. Business leaders that recognize the real impact of digital technologies on their industry, customers, partners, suppliers, functions, and business practices stand to gain substantial advantage over their competitors.
Top 10 Worldwide Supply Chain 2018 Predictions
- Prediction 1: By 2020, 60% of G2000 manufacturers will rely on digital platforms that enhance their investments in ecosystems and experiences and support as much as 30% of overall revenue
- Prediction 2: By the end of 2020, one-third of all manufacturing supply chains will be using analytics-driven cognitive capabilities, thus increasing cost efficiency by 10% and service performance by 5%
- Prediction 3: By the end of 2018, half of manufacturers will be using analytics, IoT, and social collaboration tools to extend the integrated planning process across the entire enterprise, in real time
- Prediction 4: By 2021, 60% of manufacturers will be leveraging an advanced analytics-driven data aggregation platform for supply chain operational data to improve the speed and accuracy of the fulfillment process
- Prediction 5: By 2019, 80% of supply chain interactions will happen across cloud-based commerce networks, dramatically improving resiliency and reducing the impact of supply disruptions by up to one-third
- Prediction 6: By 2021, one-third of manufacturers and retailers will be tracking goods using blockchain in anticipation of regulatory changes, resulting in an improvement in delivered product quality of up to 20%
- Prediction 7: By the end of 2018, the use of industry clouds, blockchain, and cognitive will have dramatically enhanced the understanding of supplier capacities for one-third of manufacturers, enabling the iterative rebalancing of critical supply based on capabilities rather than units and quantity
- Prediction 8: By 2019, robots will be in use in 50% of fulfillment centers, resulting in productivity gains of up 30% and helping drive down the cost of operations and offset an increasing shortage of labor
- Prediction 9: By the end of 2019, cybersecurity will have surpassed physical security as a top concern for one-half of all manufacturers, and in the transition to digitally enabled, cognitive supply chains, cybersecurity will have become a top investment priority
- Prediction 10: Smart postponement techniques and additive (3D) manufacturing will have been deployed by one-third of manufacturers by 2020, thus reducing delivery latency by up to 50%
To register for the on-demand web conference on these 10 predictions or to learn more about any of the IDC FutureScape Web Conferences, please visit: https://www.idc.com/events/futurescapes
You can find full context around these predictions in the newly published document, IDC FutureScape: Worldwide Supply Chain 2018 Predictions (Document # US43146317) on idc.com .
Co-author: Simon Ellis, Program Vice President, IDC