By Global Trade
A new report from the market research firm IDC, “IDC FutureScape: Worldwide Supply Chain 2018 Predictions,” posits that digital transformation (DX) is the key overriding theme in IDC’s worldwide supply chain top 10 predictions for 2018, including the impact for supply chain planning, supply chain execution/fulfillment, and procurement and supply chain security. While 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 refer to a continuum of change within the wider ecosystem of the manufacturing industry and global economy.
“The supply chain is undergoing almost unparalleled levels of change,” said Simon Ellis, program vice president, Global Supply Chain Strategies. “The older measures, productivity, quality, and service still apply of course, but we now see the specter of digital transformation poised to change everything. Whether the way that manufacturers and retailers plan, procure, or fulfil, digital transformation is both opening up new opportunities and presenting new challenges.”
Here are IDC’s worldwide supply chain 2018 predictions:
Prediction 1: By 2020, 60 percent of G2000 manufacturers will rely on digital platforms that enhance their investments in ecosystems and experiences and support as much as 30 percent of overall revenue.
Prediction 2: By the end of 2020, one-third of all manufacturing supply chains will be using analytics-driven cognitive capabilities, thus increasing cost efficiency by 10 percent and service performance by 5 percent.
Prediction 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.