In today's post, I would like to comment on the interesting article published by CSCMP's Supply Chain Quarterly (1.2016), summarizing the International Data Corporation report, the IDC FutureScape: Worldwide Manufacturing 2016 Predictions, full of predictions about future industry practices as it pertains to SCM.
Despite the main predictions being widely discussed in academic and business circles, such as the use of cloud computing e 3D printers, some insights are very interesting and allow us to glimpse the scope of the transformations that await us.
The first prediction that caught my attention was the use of the term Micrologistics, used to describe a logistics network scattered across small regional distribution centers to meet the requirements of a retailer omni-channel. According to IDC analysts, about a quarter of American industry will already be adopting this practice by the end of 2018.
Another interesting prediction, but perhaps better known, is that in 2018, the vast majority of the industry will have evolved its process of S&OP to a Integrated Business Planning (IBP), expanding the planning horizon and involving other areas, such as Marketing, Finance and Strategy, in the monthly demand planning cycle.
According to IDC, we should also expect chains to become increasingly Demand Driven, that is, with the use of technologies of demand-sensing and by incorporating new functions, the visibility of information along the chain will allow them to no longer move by a sales forecast, but to anticipate changes in demand and react efficiently to them in real time.
Finally, the robotics and Internet of Things (IoT) are two other factors pointed out by the study as inexorable trends for the area, confirming what we had already discussed in other posts. To address these innovations, IDC believes that by mid-2020, 50% of operational positions in supply chain leaders will be involved in knowledge-based activities that support new technologies such as robotics and cognitive computing.
For some time I have been commenting and discussing with my students, clients and partners about these transformations and the new wave of evolution that our area will go through and for which we need to be prepared.
I'm pretty excited and optimistic about what's to come!