Predictions for worldwide supply chains
The supply chain has become a critical function for companies to realize their business business potential and can bring a competitive edge 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 to business performance that is tangible and measurable.“ …“Manufacturers and retailers must rethink and re-imagine products, services and processes because of the new capabilities that a digitally enabled thinking supply chain can offer. But it isn’t enough just to have technology for technology’s sake. Manufacturers must continue to innovate and create value from their investments in solving business problems or enabling new offerings. The coming years will greatly alter the technology landscape for business functions in the manufacturing and retail industries.
Material Handling and Logistics article explores the 10 predictions for worldwide supply chains.
- By the end of 2021, half of all manufacturing supply chains will have invested in supply chain resiliency and artificial intelligence (AI), resulting in productivity improvements of 15%.
- By 2022, firms will dedicate 35% of their logistics business process outsourcing services budget to process automation, focusing on order, inventory and shipment tracking.
- By the end of 2020, half of all large manufacturers will have automated supplier and spend data analysis, resulting in a 15% procurement productivity gain.
- 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, increasing capacity by over 20% and cutting work order processing time in half.
- To lessen stress on the service supply chain, by 2023, 25% of OEMs will leverage blockchain to source spare parts, improving accuracy of usable parts by 60% and lowering expedite costs by 45%.
- By 2023, 60% of G2000 manufacturers will invest in AI-infused robotic 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 customize at scale within their supply chains, resulting in, on average, a 2–3 percentage point increase in market share.
- By 2022, the number of companies offering flexible warehousing options will have increased by 50%, which can help address seasonal demand challenges and lower fixed overhead costs by over 20%
- By 2024, for transparency and efficiency, 40% of customs agencies will join private blockchain and API-powered trade platform ecosystems to achieve a 50% increase in cross-border compliance.
Article was written by : Vice president of IDC Manufacturing Insights Mr. Simon Ellis .