Over the next decade, IDC expects that a majority of manufacturing industry growth will accrue to those companies that engage successfully with their consumers. The number will vary by industry, with those companies that are inherently consumer facing seeing a much larger percentage of growth being tied to consumer engagement and those that are not seeing less growth. But in all cases, the ability to be "relevant" to consumers will be critically important to the majority of manufacturing segments. This does not mean new business models necessarily, though there will be many such examples, but it does mean transforming the business from one focusing on products and customers (retailers, resellers, etc.) to one also focusing on consumers.
Pressure on global supply chains is intense. Organizations are expected to deliver excellent customer service, often with compressed lead times, while maintaining an optimal cost structure and ensuring the elimination of waste, wherever it may exist in the chain. In part, this requires both rethinking and reimagining the business process that makes up the supply chain; but it also means continuing to invest in both existing and new technologies to facilitate better and faster decisions and enable the people in the supply chain to be more productive and able to both anticipate potential problems and quickly react to mitigate those problems.
Below are the top 10 predictions for worldwide manufacturing supply chain from IDC Manufacturing Insights:
- Prediction 1: By 2019, 50% of manufacturing supply chains will have benefited from digital transformation (DX), with the remainder held back by outdated business models or functional structures.
- Prediction 2: By 2020, 50% of mature supply chains will use cognitive computing/AI and advanced analytics for deployment-based planning and to eliminate sole reliance on short-term demand forecasts.
- Prediction 3: By the end of 2018, 90% of manufacturing supply chains will use B2B commerce networks as the dominant collaboration tool for demand, supply, service, and new product development.
- Prediction 4: By the end of 2017, 35% of supply chains will be actively using supply chain control towers (SCCTs) integrated with expanded use of integrated business planning (IBP).
- Prediction 5: By the end of 2020, 50% of all manufacturing supply chains will have the capability, either in-house or outsourced, to enable direct-to-consumption shipments and home delivery.
- Prediction 6: By the end of 2019, 90% of manufacturing supply chains will use cloud applications within supply chain fulfillment to reduce complexity and increase speed and visibility.
- Prediction 7: By the end of 2018, 75% of large enterprise manufacturers will have transitioned to capabilities-based procurement processes within their businesses.
- Prediction 8: By the end of 2019, the use of sensors (IoT) for real-time information sharing across organizational borders will boost manufacturing supply chain productivity and efficiency by 30%.
- Prediction 9: By the end of 2020, 50% of manufacturers will derive business value from the integration of supply chain, plant operations, and product and service life-cycle management.
- Prediction 10: By 2018, technology-enabled risk and resiliency capabilities will have become a key element of value for 75% of manufacturing supply chains.
The coming years will greatly alter the technology landscape for supply chain organizations. While the predictions offered here largely focus on the near term to midterm (2017–2020), the impact of many of these will be felt for years to come. It is worthwhile to note that predictions are not finite but rather occur on a continuum of change within the wider ecosystem of the manufacturing industry and global economy.
Guidance for IT and Business LeadersTo learn how you can apply these predictions to your business, please refer to the guidance outlined for each prediction found in the IDC FutureScape: Worldwide Supply Chain 2017 Predictions report (Document on IDC.com).
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