2019 Predictions IDC FutureScape - Worldwide Predictions Manufacturing Retail

Worldwide Supply Chain 2019 Predictions

IDC Supply Chain 2019 Predictions

The supply chain continues on its journey of almost unparalleled levels of change. Digital transformation is now the overriding priority for most manufacturers and retailers, with the adoption of digital technologies aimed at improving efficiency and effectiveness as well as providing the opportunity to either disrupt their market segment or be resilient to others that may try.

As we have noted in recent research, the supply chain is moving from “cost center” to “opportunity center.” If companies are going to embrace new business models, or digitally enable older ones, they are going to need a modern, capable supply chain to do it.

Top 10  2019 Predictions for the Supply Chain

Technology leaders and their counterparts in the line-of-business (LOB) operations can use this document to guide their IT strategic planning efforts. The predictions offered here cover the near term to the long term, and the impact will be felt for years to come:

  • Prediction 1By 2024, over 60% of G2000 manufacturing organizations will rely on artificial intelligence platforms to drive digital transformation across the supply chain, leading to productivity gains of over 20%.
  • Prediction 2By 2022, over 40% of manufacturers worldwide will be integrating data from product life-cycle apps into their supply chain data to improve overall after-sales service levels, achieving increases of 60%.
  • Prediction 3By 2020, 65% of ecommerce operations will make use of autonomous mobile robots within their order fulfillment processes, thus helping increase productivity by over 100%.
  • Prediction 4By 2021, smart supplier life-cycle management solutions will automate 50% of suppliers’ enterprise activities, from onboarding to exit, thus improving both performance and relationships.
  • Prediction 5By 2024, one-third of large manufacturers will have moved to using actual demand data instead of short-term forecasts, resulting in an OTIF delivery improvement of 2 percentage points on average.
  • Prediction 6By 2020, half of the large manufacturers will have begun shifting their supply chain applications from enterprise centric to network centric, driving productivity gains of 2 percentage points.
  • Prediction 7By 2022, digital technologies will have enabled the automation of repetitive operational tasks, leading to 50% less planner intervention and “touchless” sales and operations planning.
  • Prediction 8By 2023, talent shortages in the supply chain for 75% of the top 500 manufacturers worldwide will largely have been mitigated by the use of supply chain digital assistants.
  • Prediction 9 By 2019, 25% of manufacturers will have doubled investments in distribution automation in reaction to dramatic increases in single-item orders originating from the growth of online marketplaces.
  • Prediction 10By 2020, track-and-trace investments will have increased by 30% to improve forecast accuracy and customer experience metrics and real-time order visibility will have become the norm for consumers.

Learn more about the 2019 Supply Chain Predictions

For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Supply Chain  2019 Predictions web conference on-demand.

Victoria Brown,
Research Manager, Global Supply Chain Execution

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