Supply Chain & Logistics Industry Trends 2016

Logistics, Supply Chain Management, ,
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The logistics industry has been undergoing a series of transformations for the past few years. Things that seemed like science fiction in the past, like augmented reality and 3D printing, are actually becoming part of the industry.
Technology is being used widely today in order to provide faster and more reliable delivery services. In the future, we can see a lot more technology and innovation shaping the entire concept of logistics.
As the supply chain becomes more complex with suppliers, their customers and consumers interacting with each other across the globe and across different channels, it’s more important than ever for companies to get and maintain good control of their logistics.
Here are few key trends that supply chain software analysts say are shaping the Supply Chain landscape—and pushing more logistics managers to finally put it to work.
Internet of Things (IoT)
• The Internet of Things (IoT) is the network of physical devices that interact with each other and with business software systems.
• Gartner estimated the number of web connected devices will reach 25 billion by 2020.
• The Internet of Things (IoT) is enabling more and faster information across the supply chains for better decisions, planning and execution.
3D Printing
• 3D printing or additive manufacturing is a process of making three dimensional solid objects from a digital file.
• Frost & Sullivan predicted 3D Printing to go beyond market predictions and Gartner placed 3D printing among the top 10 strategic technology trends for 2016.
• 3D Printing is impacting the stages of the product development lifecycle, from the product itself to packaging, presentation and delivery.
Blockchain Technology
• Blockchain is a digital technology for recording and verifying transactions.
• IBM and more than twenty other companies, including Intel, Cisco, and Accenture, are part of a new collaborative effort organized by The Linux Foundation to advance the popular blockchain technology.
• A supply chain blockchain application could be used to record the balances and transfers of inventory across a distributed supply chain network.
Hybrid Transaction / Analytical Processing
• HTAP was coined in early 2014 by analyst firm Gartner to describe a new generation of in-memory data platform that can perform both OLTP and OLAP without requiring data duplication.
• HTAP system is commercially available from SAP with the SAP HANA platform.
• SAP Sales & Operations Planning application uses the power of the SAP HANA platform to plan and re-plan supply and demand.
Digital Supply Network
• Replacing the classic supply chain concept, a series of hubs or modules linked by information and transportation networks. A digital supply network is seamless and interconnected through digital technologies such as machine-to-machine, analytics and Big Data, mobile, social media, and the cloud.
• Four characteristics contribute to the digital supply network:
    • Connected
    • Scalability
    • Intelligent
    • Rapid
Factory of the Future
• Factory of the Future is an umbrella term for Smart Manufacturing which means usage of advanced technologies, usage of internet of things and applying analytics data to make manufacturing more productive and responsive.
• According to Gartner, this is an evolution and opportunity for manufacturing in order to get next level of cost improvement and productivity gains.
Physical Internet
• Physical Internet is an open global logistics system founded on physical, digital, and operational interconnectivity, through encapsulation, interfaces and protocols.
• It will transform the way physical objects are handled, moved, stored, realized, supplied and used.
• The project currently has funding from the National Science Foundation and contributions from MHIA and CICMHE.
Omnichannel Supply Chain
• Omnichannel Supply Chain uses a central stock pool to fulfil orders from all retail channels, including in-store, e-commerce and m-commerce, concessions and franchises, and telephone and catalogue and controls pricing, fulfilment, sales, stock management and ordering.
• It’s a fully integrated, end-to-end solution, providing an accurate and comprehensive visibility of stock, enabling retailers to maximise trade across their customer facing systems.
Wearable Technology
• Flextronics, a global Electronics Manufacturing Services (EMS) company, defined WT as “an application-enabled computing device which accepts and processes inputs. “
• DHL’s testing has shown, smart glasses can improve warehouse efficiency.
• Kylene Zenk-Batford highlighted potential benefits of Wearable Technology in the manufacturing realm.
Postmodern ERP
• “A technology strategy that automates and links administrative and operational business capabilities with appropriate levels of integration that balance the benefits of vendor-delivered integration against business flexibility and agility.”
• A postmodern ERP system will likely be comprised of applications from two or more vendors, and may include multiple deployment models.
Returns Management
• Returns management is the supply chain management process by which activities associated with returns, reverse logistics, gatekeeping, and avoidance are managed within the firm and across key members of the supply chain.
• Organizations which have streamlined their returns operations have achieved nearly $300K in annual cost savings as per Aberdeen Group Report.
Consumer Driven Supply Chain
• Consumer driven supply chains predict future demand, meet forecasted demand, maximize customer satisfaction, and ensure product availability.
• Predictive analytics enable advanced modelling, forecasting, and optimization throughout every aspect of the customer-driven supply chain – from assessing and monitoring current status and accurately predicting and simulating future situations to measuring overall supply chain performance.
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