Digital Transformation 2018: Supply chain predictions

Posted on 4 Jan 2018 by Jonny Williamson

How will digital transformation affect global logistics networks and supply chain planning, fulfilment, procurement and security?

Digital transformation affects global supply chains, supply chain planning, supply chain execution/fulfilment, – image courtesy of Depositphotos.

The new IDC (International Data Cooperation) report has shown that although the predictions largely focus on the near term to midterm (2017–2020), the impact of many of these predictions will be felt for years to come.

Most predictions refer to a continuum of change within the wider ecosystem of the manufacturing industry and global economy.

IDC’s worldwide supply chain 2018 predictions are:

  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.
  2. By the end of 2020, one-third of all manufacturing supply chains will be using analytics-driven cognitive capabilities, therefore increasing cost efficiency by 10% and service performance by 5%.
  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.
  4. In 2021, entire 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 fulfilment process.
  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.
  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%.
  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.
  8. By 2019, robots will be in use in 50% of fulfilment centres, resulting in productivity gains of up 30% and helping drive down the cost of operations and offset an increasing shortage of labour.
  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
  10. Smart postponement techniques and additive (3D) manufacturing will have been deployed by one-third of manufacturers by 2020, therefore reducing delivery latency by up to 50%.