Research analysis on future of supply chain, information gathered through secondary research, articles, press releases, etc. Digital transformation is one of the important aspect while predicting the future of supply chain management Major trends that will derive the change in current supply chain are growth in urbanization, e Commerce, congestion, changing consumer behavior and the utilization of containers

1. Future of Supply Chain
Secondary Research and Analysis
Abhishek Verma

2. ▪ Overview of Supply Chain
▪ Trends & Challenges
▪ Digital Supply Chain
▪ Value Addition
▪ Opportunities
Executive Summary

3. Executive Summary
▪ The Supply Chain is in the midst of an evolution that is reshaping how
companies organize & operate the business
▪ Digital transformation is one of the important aspect while predicting the
future of supply chain management
▪ Major trends that will derive the change in current supply chain are growth in
urbanization, e-Commerce, congestion, changing consumer behavior and
the utilization of containers
▪ Proper use of digital technologies will lead to value addition in the supply
chain such as improvement in Collaboration, Velocity, Agility, Visibility,
Responsiveness and Transparency
▪ Supply Chain Executives believes that Cloud Computing and Big Data
Analytics are the two major technologies where companies should invest to
bring innovation in supply chain

4. Overview

5. Overview of Supply Chain
However, the Supply Chain is not that simple
▪ Currently, it in the midst of an evolution that is reshaping how companies
organize & operate the business
▪ New technologies are connecting & integrating firms, processes and functions
across entire networks
▪ Digitization is one such thing that come in the discussions while predicting the
future of supply chain management
With artificial intelligence, big data, predictive analytics, blockchain, 3D printing,
etc. to be introduced in Supply Chain in the coming future, the overall structure of
this industry is going to be even faster-paced, vigorously competitive, and an
omni-channel business environment
Simplified view of a Mobile Phone Supply Chain
Manufacturer
Raw material
Warehouse
Raw Material
Manufacturer
Finished Goods
Distribution
warehouse
Retailer
Product at End
Consumer
Inbound
Logistics
Flow of goods, information
and finances from supplier’s
supplier to customer’s
customer

6. Trends & Challenges

7. Trends Shaping the Future of Supply Chain & Logistics
Supply Chain & logistics industry largely remained unchanged for decades & lingering in a non-digital
world
Below mentioned are a few macro-economic trends that would derive a change in the Supply Chains of companies
Congestion could lead to a 20% diversion of cargo from
truck to rail, equating to a 33% increase of 8.5M rail
intermodal shipments per year
About 30% of containers in circulation are empty
and spend about half of their life sitting idle or
shipped without cargo
From 1999–2017, e-Commerce sales increased 30x, &
it is growing nearly 20x faster than brick and mortar
retail
Brick & mortar sales volume, however, is about 9x
that of e-commerce
United Nations estimates that four billion people (54% of
the World’s population), live in cities
In the next 15 years, Economist projects that urbanization
would increase average city density by 30%
Source: Medium Corp Article
Urbanization
Congestion e-Commerce
Containerization

8. Trend Example – Brick & Mortar vs Ecommerce | Omni-channel experience
gives competitive edge to retailers
▪ Company’s omni-channel experience is only as strong as
their supply chain
▪ Offering customers timely home deliveries, the right
inventory at the right stores, and a seamless return/reverse
logistics process sets the foundation for retail differentiation
and a delightful customer experience
e-Commerce leaders like Amazon have been
transforming the industry with increasing last mile delivery
standards & supply chain data transparency
Source: Medium Corp Article

9. Challenges in Industries | Legacy Supply Chains would handicap the agile
model of companies needed in a digital economy
Managing Data
Real time exchange, storage and
processing of large amount of data
Rising Customer Expectation
Individual & Business customers
increasingly expect quick delivery,
real time updates & flawless
performance
End to end Visibility
Real time performance monitoring &
traceability
Sustainability
Companies consider the
environment impact of
manufacturing & supply chain
activities, from source to end
customer
Hyper-segmentation
Companies microsegment customers with similar
needs who require tailored service
Source: Bain & Co Article

10. Digital Supply Chain

11. Develop | Plan | Source |
Make| Deliver | Support
Digital Supply Chain | Moving from ‘doing digital’ to ‘being digital’ will
lead companies to provide future competitive advantage
Traditional Supply Chain Digital Transformation Digital Supply Chain
Digital Supply Chain uses digital technologies
to alter traditional value chain of products &
services, business models & business processes
to provide altogether new & improved value to
all stakeholders
Digital Supply Chain brings:
▪ Collaboration
▪ Velocity
▪ Agility
▪ Visibility
▪ Responsiveness
▪ Transparency
Sources: IDC & Supply Chain Article
Limited visibility throughout the supply chain,
lack of real time updates, cannot adapt or
less responsive to changing market condition
▪ Frictions
▪ Delays
▪ Inefficiencies
▪ Bullwhip Effect

12. Digital Disrupters | Business models with unique approaches
Digital disrupters are changing the consumer expectations
Fast Delivery Ultra Fast Delivery
Shop Subscription
Fast Fashion Ultra Fast Fashion
Source: Secondary Research

13. Digital Disrupters | Influential digital supply chain initiatives by industry
leaders
Amazon created a plan to address its growing challenge with shipping
capacity
Its Amazon Delivery Service Partner program, a fresh concept with a
relatively low entry cost, allows entrepreneurs to deliver packages for the
company
AB InBev used an Artificial Intelligence (AI) innovation to improve its filtration
processes, enabling operational efficiency
It partnered with Pluto7 — Google Cloud’s preferred partner for ML & AI
The AI engine reduced errors in the filtration process by a staggering 400%
over manual predictions and allowed the company to make its beer more
consistently tasty, at a reduced cost and in less time
Levi Strauss developed a new operating model to address long lead times,
missed sales and unproductive inventory
By using laser technology and rearranging design and production, it finishes
jeans later in the process, reducing time to market and decreasing the
environmental impact.
Source: SCM World Report 2019

14. Digital Supply Chain | Area of applications in each stage of Supply chain
Demand Forecasting
Capacity Planning
Production Planning
Purchasing
Procurement
Production
Inventory Management
Logistics &
Transportation
Warehouse
Management
Route Optimization
Supporting Technologies
Big Data, Analytics & IoT
Big Data
Analytics
Big Data
Blockchain, Big Data, Analytics & IoT
3D Printing, Predictive Analytics, Sensors & IoT
Big Data, Predictive Analytics & SC Control
Tower
Sensors, Geo Analytics, Big Data & 3D Printing
Robotics, Drones & Augmented Reality
Big Data & Predictive Analytics
Data Driven Demand, Faster Time to Market
Shorter Lead Time, Better Decision & Flexibility
Seamless Connected SC Partners
Purchasing through collaborative optimization
Supplier Collaboration, Smart Procurement
Smart Manufacturing, Enhanced Connectivity, Operation
Optimization
Visibility, Diagnose Real Time Consumption Issue, Sensor
Driven Replenishment
Track & Trace Product, Increase Visibility
Increase Productivity in Picking & Delivery, Reduce
Human Efforts
Automated Updating of Capabilities & Schedules
SC Area Benefits
*SC is Supply Chain
Process
|
Production
|
Inbound
Logistics
Source: Deloitte Next Gen Supply Chain
Report

15. Digital Supply Chain (continued)….
Field Service
Warranty
Management
Reverse Logistics
After
Sales
|
Customers
3D Printing, Cognitive Computing
Predictive Analytics & IoT
Analytics & Big Data
Predictive Spare Parts Management, Send
Critical Warning Before Hand
Improve Claims Predictability & Warranty
Service
Faster Moving Time, Better Visibility
*SC is Supply Chain
Source: Deloitte Next Gen Supply Chain
Report
Supporting Technologies
SC Area Benefits

16. Percentage of respondent saying each technology is
“disruptive & important”
▪ Level of investment in technologies identified as
“disruptive & important” for the future supply chain
strategy
▪ Cloud Computing and Big Data Analytics are the
prominent technologies which would derive the
innovation in digital supply chain
Source: SCM World
Survey Respondents 1,187
Investing to make the supply chain Digital

17. Value Addition to Supply Chain

18. Value Addition to Supply Chain from Digital Transformation | Use of digital
solutions will make the supply chain smart, connected, intelligent
Better Decisions &
transparency
Lower inventory &
warehousing costs
Lower logistics &
transportation cost
Lower risk
& complexity
Higher
product & service
quality
Increase Supply
Chain
Management
Flexibility
Sources: Deloitte Next Gen Supply Chain Report & Individuals Research

19. Benefits from the digital supply chain
TECHNOLOGY
VALUE
OPPORTUNITY
of all data generated
by 2020 will come
from connected
sensor
Worldwide IoT
Market by 2020
in maintenance costs
through IoT
connected things will be
used in 2020
added to the global GDP
by the Industrial Internet
market within the next 20
years
generated by
connected industrial
machinery to make oil &
gas exploration 1% more
efficient
40%
$1.7
Trillion
25%
Reduction
25 Billion
$10-$15
Trillion
Savings of
$90Billion
Source: DHL

20. Opportunities

21. Opportunities for Chief Supply Chain Executives
Revisit their existing supply chain
Align the supply chain with company’s major business strategies
Unlock the potential of emerging digital technologies
Enable Digital Needs & Readiness Assessment
Draft Digital Policies & Practice
Create Roadmap & enable Digital Transformation
Transform traditional Supply chain to digital Supply Chain
To design a supply chain that is fit to flourish in the future, Chief Supply Chain Executives should anticipate how new
technologies will impact their supply chains and look to evolve their supply chain management approaches accordingly
Source: SIPM
Chief Supply Chain
Executives Should

22. Thank you!