Perhaps this should be called the future directions/trajectories of supply chain management and logistics. The prognostications reflect three foci—supply chain management / logistics as stand-alone topics; within a larger context, such as manufacturing or retail; or in terms of mega trends.
For 2020 and perhaps for much of the decade, change/transformation will be the issue—supply chain management, logistics, manufacturing, and retail. Much of 2020 will be items that have begun and how they will play out. Call it unresolved challenges. They are unresolved because they are evolving and because many logistics providers, manufacturers, and retailers are slow to transform—using programs instead of strategy.
The strategic importance of supply chain management will escalate. Recognizing and acting on it will be a sign of the manufacturing and retail leaders.
·
Underlying much of what will continue to reflect
power shifts—customer have it for e-commerce, population and how to serve large
populated areas and lesser populace regions
when speed of order delivery is important, and shift of key ports.
·
The urgency of change will increase. The
challenge for some firms will be going for quick fixes instead of
transformation and that can compound their situations.
·
Recognizing that supply chains are not linear,
that there are supply chains within supply chains, will increase as a key
action in increasing end-to-end velocity and performance.
·
IMO 2020 will play out to see the impact of
ocean carriers that use and pay for low sulphur fuel versus the structural
integrity, life, and maintenance of scrubbers, the alternative to paying for
low sulphur fuel.
·
Customer power and expectations will continue to
remake retail and manufacturing. Speed is the new competition.
·
The disruption and chaos that is happening in
retail and manufacturing is being driven by the supply chain revolution, not
evolution, with its end-to-end velocity. This, in turn, is driving logistics
transformation. All of this will
continue.
·
Technology will increase as a disruptor, change
driver, and requirement in logistics and supply chains. The question will be
whether shippers continue to expect logistics providers to lead the way or if
they will step up to direct what is needed for greater velocity, visibility,
and integration across the total supply chain.
·
Retail is approaching the tipping point on its
e-commerce omnichannel ability to meet customer expectations with perfect order
delivery velocity. Transforming to the strategic, weaponized supply chain takes
time---time that is slipping away.
·
Retailing and manufacturing is in the early
stages of a new reality for how to reach and serve customers, both B2C and
B2B. That new reality requires the new
supply chain with end-to-end velocity.
·
Pressure will mount of all transportation for
reducing greenhouse gases.
·
3D printing will begin to move from factories to
supply chains to improve perfect order performance, especially as to delivery
requirement.
·
The disruption and chaos that has been happening
in retail and manufacturing is being driven by supply chain revolution, not
evolution—which, in turn, is driving logistics revolution. All this will continue.
·
3PLs will begin to transform to 3PSCM or SCMaaS
as the emphasis shifts to the end-to-end supply chain. Logistics will be defined within the supply
chain, not as separate segments.
·
The push for greater supply chain velocity will
mean the use of lean supply chain management, especially for the outside the 4
walls supply chain.
·
Technology will continue its importance in the
new supply chain. But there will be separation as to the real value of various
technologies.
·
The position, role, and demands on supply chain
management and logistics will increase as IoT advances.
·
Logistics disruption increases. Its role and
structure in the new supply chain. Continuing impact and threat of end-to-end
supply chain velocity and its order delivery velocity. Customer reverse
outsourcing. Technology impact on
industry niches. Disintermediation. Future
of some providers.
·
Digitization will be a key technology for supply
chains and logistics for visibility, velocity,
and integration. Two important documents here are the bill of lading and purchase
order.
·
E-commerce order delivery leaders may be
reaching the limits on order delivery, downstream velocity, even with robotics and
aligning more distribution centers with customers. This will mean shifting
emphasis upstream—toward the supply of supply chain management. That is also
important for achieving end-to-end speed.
·
ERP systems will be challenged to meet the
end-to-end velocity requirements of supply chains in the new reality.
·
As the inventory effect of trade wars forward
buying draws down, the performance ability of in-store e-commerce fulfillment
will be tested.
·
The challenge
will increase for SME manufacturers and retailers to up their supply chain
capability without having the resources for technology.
·
As the digital factory gains traction, the need
for the digital supply chain will be recognize. Otherwise the benefit is weakened. This means moving outside the four walls.
·
Supply chain velocity and the new supply chain
will especially put more pressure on container line performance and on the role
and design of 3PLs.
For more on the new supply chain management and logistics—the new reality—go to www.ltdmgmt.com
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