The supply chain continues to undergo almost unique levels of change. The old measures — productivity, quality, and service — still apply, but we now look at digital transformation to change everything.
Supply chains have increasingly become an important task for companies to realize their business aspirations and are a competitive weapon in the modern, digital economy. Advanced supply chain capabilities can support more efficient and effective current business approaches as well as new business models that translate directly into business performance that is tangible and measurable.
Each year, IDC Manufacturing Insights provides manufacturers and retailers with the top 10 predictors and underlying drivers we expect to impact IT investment in the supply chain in 2020 and beyond.
Digital Transformation was the major theme for the second consecutive year in our annual Top 10 Predictions for Supply Chains in 2020 forecasts are:
By the end of 2021, half of all manufacturing supply chains will have invested in supply chain revitalization and artificial intelligence (AI), resulting in productivity improvements of 15%.
By 2022, companies will dedicate 35% of their logistics business process outsourcing services to focus on order, inventory and shipment tracking, from automation to process.
By the end of 2020, half of all large manufacturers will have an automated supplier and spend data analysis, resulting in 15% procurement productivity.
By 2023, supply chain micro-application extensions will account for one-third of all new technology investments in manufacturing and retail.
By 2023, 65% of warehousing activities will use robots and situational data analytics to enable storage optimization, increase capacity by over 20%, and cut work order processing time in half.
Also read: 7 Best Ways to Raise Warehouse Productivity
To reduce stress on the service supply chain, by 2023, 25% of OEMs will deliver the blockchain to source parts, improve usability of usable parts by 60% and reduce costs by 45%.
By 2023, 60% of G2000 manufacturers will invest in AI-infused robot process automation to automate tasks through increased productivity and address supply chain skills deficit.
By 2024, 75% of all consumer-facing companies will have developed the ability to adapt extensively within their supply chains, resulting in, on average, a 2–3 percent increase in market share.
By 2022, the number of companies offering flexible warehousing options has increased by 50%, which can help reduce seasonal demand challenges and fixed overhead costs by more than 20%.
Also read: 4 critical inventory management strategies
2027 For transparency and efficiency, 60% of customs agencies will join the private blockchain and API-driven business platform ecosystem to achieve a 50% increase in customs compliance.
There are a number of Activities that We’d recommend manufacturing Businesses Accept that revolve around Considering the future of the Company, the likelihood of industry Disturbance, as Well as Also the specific Capacities technology would Have the Ability to add for your supply chain:
● Invest in technology offering efficiency/effectiveness today yet empower future capabilities that may improve resiliency or identify new opportunities.
● Maybe not”technology for technology’s sake” but resolving company issues or seizing on chances. Are you a tech company? In the event the response, as it frequently is, is”no,” then use a technology partner and concentrate your efforts on how technology helps resolve present business issues or in expectation of future issues.
● Work with large and small partners to accelerate your IT abilities and function the line of company. Topical resources and experience can help you move fast and efficiently, which is vital in the modern international market. Expand your horizons to include smaller, app-driven capacities as extensions to wider systems.
● Review your supply chain to ensure it is prepared for raising amounts of enabled products and procedures. This is not only your software, datacenters and programs; it is also about center business infrastructure and architecture choices, such as security and integration.
● Evaluate your comparative maturity at the adoption of new technology and, even more importantly, your capacity to interpret those technologies into electronic transformation. You’re likely going to proceed more quickly with a few technologies, like the Web of Things and machine learning, but be certain that you’re experimenting with each the technology we identify as invention accelerators.
● Be evident organizationally that contemporary, electronic technology isn’t about replacing folks but replacing jobs and freeing people up to concentrate on more things that are impactful.
Manufacturers and retailers are rethinking and rearranging products, services and processes due to new capabilities that can offer a digitally enabled thinking supply chain. But this is not enough for technology only for technology. Manufacturers must continue to innovate and create value from their investments to solve business problems or enable new offerings.
The coming years will change the technology landscape for business operations in the manufacturing and retail industries. While the predictions offered here largely focus on the near term in the mid-term (2020-2022), the impact of many of these predictions will be felt for the coming years.