The report titled, "IDC FutureScape: Worldwide Manufacturing Supply Chain 2016 Predictions," by Simon Ellis, John Santagate and colleagues highlight the following ten trends:
1) Cloud-based commerce networks: By the end of 2016 cloud-based commerce networks will be pervasive in the areas of demand awareness, supply visibility, or new product development.
2) Micrologistics: By the end of 2018, at least a quarter of all manufacturers will have implemented a "micrologistics" network that involves multiple, localized nodes, such as smaller regional DCs. This distribution strategy is being driven by the need to support retailers's omnichannel efforts. Manufacturers will rely on 3PLs to enact these strategies.
3) Integrated business planning: By 2018, a great majority of manufacturers will be using integrated business planning (IBP) to coordinate their enterprise-wide planning activities. IBP extends sales and operations planning to include product innovation, marketing/campaign, customer/account, and financial/risk planning. To achieve this holistic planning approach, previous planning systems such as trade promotions management and S&OP will need to be integrated - or at least united under a common analytical platform.
4) Modern postponement: At least half of the manufacturers will use postponement strategies where production or customization is done at the last possible moment. Manufacturers will become more flexible by using technologies such as 3-D printing, robotics, and cognitive computing (self-learning systems that use data mining, pattern recognition and language processing).
5) Resiliency and visibility: Manufacturers have strengthened their use of demand-sensing technologies. As a result, they now have better visibility into what their customers want and can be more resilient in the face of demand changes. The visibility also means that production can now be based on actual, real-time demand sensing.
6) "Broadening" of the supply chain: Manufacturers will continue to broaden their supply chains to include nontraditional elements - such as product design, manufacturing, and service - in order to increase their abilities to respond to customer demand.
7) Cloud-based WMS and TMS: Manufacturers will increasingly move away from on-premise installations of supply chain execution systems and toward cloud-based warehouse management and transportation management systems - or a hybrid version that combines the two approaches.
8) Robotics: IDC predicts that 80% of manufacturers will reevaluate whether to use robotics and automation technology in their warehousing networks, thanks to the serious improvements that have been made in the capabilities, usability, and reliability of robots and autonomous guided vehicles.
9) The Internet of Things: IDC expects that efforts by manufacturers to embrace the Internet of Things through the use of such devices as remote sensors will continue as they look for data-driven insights into their operations. Data insights will improve both productivity and decision-making.
10) Talent: IDC anticipates that by 2020, half of all operational jobs in the supply chain will have evolved into knowledge-based ones that support new technologies like cognitive-computing and robotics.
Source: Ellis, S., Santagate, J. et al. 2016 "IDC FutureScape: Worldwide Manufacturing Supply Chain 2016 Predictions."