SCM Trends - Research and Analysis

Transcription

SCM Trends - Research and Analysis
SCM Team
April 2014
Transform to the power of digital
Agenda
▶ Introduction
▶ Analysis & Evaluation of trends within the scope of SCM
▶ Description of the Capgemini SCM trend star categories
▶ Appendix
Copyright © 2014 Capgemini Consulting. All rights reserved.
2
The understanding of global SCM trends is the foundation for future investments of
companies aiming to benefit from being first mover
Purpose of the study
Background
Objectives
 Supply Chain Management is constantly facing
changing business environments
 Globalization required full transparency regarding
the status of material movements
 Volatile markets require agility and flexibility in
the supply chain in order to address disruptions
and ad hoc changes in business environments
 Individualization of customer requirements lead to
increased requirements towards reactivity and
specific supply chain models – supply chain setups need to be segmented in order to fulfil
customer expectations
 The study should provide an overview of mid-term
(2-5 years) future SCM trends that are visible now
 Orientation towards a future set-up of supply
chain management should be supported by
working out the major trends and enable
companies to prepare for their future
3
Agenda
▶ Introduction
▶ Appendix
4
The approach on trend investigation is based on factorization and classification of
researched trends
Approach of trend clustering
1
2
Global trend research
 First step:
Factorization of investigated trends
 resulting in 40 global addressed trends
 Second step:
Classification of factorized trends
 resulting a trend star of six trend categories
Press releases and
annual reports
 7 trends
In-house interviews and
keynote speeches
 +20 trends
scientific papers in the scope of
global SCM
 +56 trends
reports from technology research and advisory
firms
 +72 trends
Contextual factorization and classification
factorization
> 150
trends
classification
 40
trends
 six
categories
Sustainability
Emerging
Technologies
Optimization
Trend
Star
Service
orientation
Analytics &
simulation
Segmentation
Source: Research via ebsco crawler, most replies from Supply Chain Management Review
A Vision of Supply Chain Evolution, MIT Center for Transportation & Logistics, Crossroads 2013 Conference Report, June, 2013
Capgemini Experts and Trend Analysts
Trends and Strategies in Logistics and Supply Chain Management – Embracing Global Logistics Complexity to Drive Market Advantage, BVL international, October, 2013
5
The Capgemini Consulting trend star defines the categorization of global trends that
influence the development of future SCM activities
Brief description of global trends in the scope of SCM
Sustainability addresses expectations on
ecologic and social behavior and thus
directly impacts supply chains and logistics
New algorithms and heuristics
but also 3D product surface
geometries leverage
optimization in SC planning,
execution and scheduling
Sustainability
Emerging
Technologies
Optimization
Emerging technologies drive innovations
in manufacturing, process and consumer
goods industry and therefore impact
future value chain networks
Trend
Star
Service orientation drives
future SCM orientation in
terms of new business models,
centralized SC service
management and product
individualization
Service
orientation
Analytics &
simulation
Segmentation
Analytics & simulation software
capabilities empower predictions and realtime decision making and thus lead to
agile and flexible SC planning and
execution
Segmentation describes a trend towards
designing, planning and execution of
different SC configurations prioritized for
different customer and product segments
Source: Trend Star descriptions refer to Capgemini Consulting Expertise, for further references see appendix
6
A web-based text mining on SCM future trends gives first insights on the trends’ interest
fluctuation and relative trend importance
Web-based analysis of trend hypes in SCM context
Starting point was a factorization and classification
factorization
> 150
trends
Peak trends in
each category
0,7
classification
 40
trends
The relative scores of trends is based upon a comparison of web-researched
trend responses and trend queries
 six
categories
Sustainability
Emerging
Technologies
Optimization
Trend
Star
Service
orientation
Internet of things
0,6
Analytics &
simulation
Segmentation
Segmentation In-memory
analytics
Business Process
as a Service
0,5
0,4
The trends’ interest can be derived over time
Circular
economies
Dynamic Risk
Management
0,3
0,2
0,1
Shifting economic power
carcity of natural resources
Circular economies
Closed-loop supply chains
Health and wellbeing
rporate social responsibility
Emerging technologies
Cloud computing
Master Data Management
edded systems and sensors
Social media
Integration brokerage
RFID technology
yber-physical supply chains
Smart factories
Human augmentation
Internet of things
(Enterprise) 3D printing
Segmentation
Supply chain segmentation
Micro-segmentation
ct clockspeed supply chains
Analytics & simulation
upply chain decision making
gile supply chain execution
In-memory analytics
tive analytics and simulation
Cognitive computing
Predictable unpredictability
Service orientation
uct to service supply chains
usiness process as a service
Shared service center
Control tower architecture
Mass customization
Product individualization
re as a service supply chains
Optimization
Dynamic risk management
hastic supply chain planning
lobal sourcing optimization
anagement systems for SC
elon inventory optimization
Slotting optimization
3D load design
0
Sustainability
Emerging Technologies
Segmentation
Analytics &
Simulation
Service
Orientation
Optimization
Note: Within the google trend analysis a peak describes the date of maximum trend hype while trend hyping of today gives a percentage comparison to the peak
7
Trends can further be streamlined by a prognosticated industrial relevance within two to
five years
Mid-term SCM trends (2-5 years)
2 - 5 years to mainstream adoption
Expectations
Stochastic SC Planning
Supply Chain Segmentation
Multiechelon Inventory Optimization
(Enterprise) 3D Printing
3D Load
Design
Internet
of Things
SCM Business Process as a Service (BPaaS)
Circular Economies
Integration Broker
Predictive analytics and simulation
Master Data Management in SCM
In-memory
analytics
RFID Item level
Peak of
Inflated
Expectation
Control Tower + Shared Service Center
Workforce Management Systems for Logistics
Cyberphysical SC
Innovation
Trigger
Scarcity of Natural Resources
Trough of
Disillusionment
Slope of
Enlightenment
Trends with an expectation of two to five years to mainstream adoption
Source: Capgemini analysis based on the Gartner Hype Cycle model
Plateau of
Productivity
Y-Axis: Degree of a trend’s expected
impacts
X-Axis: Real demonstrated trend benefits
8
The expected benefits of trends can subsequently be plotted against mainstream adoption
Mid-term SCM benefits expectations
Years to mainstream adoption
Two to five years




In-memory analytics
RFID (Item level)
Internet of Things
Cyber-physical systems
These trends should be
focused as they might have
revolutionary impacts on
supply chain core business
processes
 Predictive Analytics & simulation
 Scarcity of natural resources
 health & wellbeing








3D Load Design
Master Data Management in SCM
Workforce Management Systems
Circular Economies
Multiechelon Inventory optimization
Stochastic Supply Chain Planning
Supply Chain Segmentation
Enterprise 3D printing
These trends should be
addressed as they provide
good chances of increased
revenue or cost savings in
supply chain management
 Control Tower / Shared Service
Center
 Mass Customization
 SCM Business Process as a Service
 Integration Brokerage
high
moderate
Benefit
transformational
Probably less than two years
Addressing these trends
provides incremental
improvements on
established supply chain
processes
Source: Several survey reports of Gartner Group adressing SCM planning, SCM execution, emerging technologies and industrial sectors
9
The six categories of the Capgemini SCM trend star include trends which will become the
major topics in SCM for the next two to five years
Trends and impacts on future supply chain management










?



Dynamic Risk Management
3D load design
Stochastic SC planning
Workforce Management
Systems
Multiechelon inventory
optimization
Global sourcing optimization
Scarcity of natural resources
Circular economies
Corporate social responsibility
Sustainability
Emerging
Technologies
Optimization











Cyber-physical supply chains
Internet of things
Social media
Cloud computing
Master Data Management
RFID technology
Smart factories
Human augmentation
Embedded systems and sensors
Integration brokerage


In-memory analytics
Predictive analytics &
simulation
Cognitive computing
Real-time SC decision making
Agile SC execution
Trend
Star







Product to service supply chains
Business process as a Service
Shared service center
Control tower architecture
Software as a Service SC
Mass customization
Service
orientation
Analytics &
simulation
Segmentation
?



SC segmentation
Mirco-segmentation
Distinct clockspeed SC




?
Legend:
Rising trend
Constant trend
? No information
Falling trend
Note: The bold formatted trends are the subset of identified trends which have the highest beneficial impact within the next two to five years
10
Agenda
▶ Introduction
▶ Appendix
11
Sustainability is an ongoing global trend driven by consumer behavior and scarcity of
resources that lead to economic impacts on SCM
Trend
Star
Sustainability
Environmental sustainability
Social sustainability
Scarcity of raw materials is driving
innovation in materials, with companies
replacing for instance copper with
aluminum or steel with resin
Increased urbanization and aging population
leads to a growing number of individuals who
feel more responsible for healthy
consumption and healthy products
Circular economies and closed-loop supply
chains aim at a better management of conflict
materials and rare earth metals in terms of reuse and recycling to improve sustainability
Especially the consumer products
and retail sector shifts towards
transparency and visibility to engage
with customers perception
Environmental protection and laws
are driving companies and supply
chains to reduce emission and
increase energy efficiency
Companies leverage their corporate
social responsibility to meet their
customers expectations regarding
social cares and individual wellbeing
Sustainability trends






Scarcity of natural resources
Circular economies
Corporate social responsibility
Impacts on SCM


Consumer values foster the need to develop new operational
and managerial practices that support sustainability in SCM
A reengineering of SCM addressing social, ecological and
economical aspects of sustainability can lead to cost savings
through “green” operations
Source: Future Value Chain 2022 – Industry Initiatives Address Challenges of the Digital World and the Fight for Resources, Capgemini & The Consumer Goods Forum Report, 2013
12
Emerging technologies drive manufacturing processes and systems and thus have a huge
impact on future supply chain management
Trend
Star
Emerging technologies
Cyber-physical supply chains interlink embedded systems with web services in order to
improve supply chain management. Technologies such as RFID or NFC in combination
with mobile cloud computing will leverage real-time SC decision making.
Text
3D
Text
Text
Text
Text
The Internet of Things will reach 26 billion installed units by 2020. By comparison, the
market for smart phones, tablets and PCs will be smaller, at 7.3 billion. This will impact
supply chain operation models.
Leading companies are investing strategically in 3D Printing as there is a clear
opportunity to use 3D printing to produce items with low unpredictable demand, such
as for spare parts and low-volume production.
Selection of Emerging technology trends







Cyber-physical supply chains
Internet of things
Smart factories
Human augmentation
Cloud computing
RFID technology
Impacts on SCM



Devices become more self-aware and communicate with their
ecosystems to open new possibilities for the supply chain
Real-time availability of more granular data will improve
decisions for planning, allocation, optimization and service
Nonhuman supply chain customers will decide where and
when they need products or how to use capacity optimal
Source: Digital Marketing, Internet of Things and 3D Printing Are Digital-Business-Driven Disruptions for Supply Chains, Gartner Research, April 2014 (also see reference list)
13
Increasing IT power and capacity turns analytics and simulation to becoming a future trend
for enhanced decision support in SCM
Trend
Star
Analytics & Simulation
The application of analytics on companies’
complex data sets empowers them to better
plan their manufacturing processes to meet
customer demands.
The integration of SCM databases and a
subsequent application of big data analytics
improve efficiencies of inventory management,
sales, distribution process and continuous
monitoring of devices.
Predictive analytics, for instance in
maintenance of equipment, is an
immediate beneficial segment in Supply
Chain Management.
Analytics & simulation trends






In-memory analytics
Predictive analytics & simulation
Cognitive computing
Real-time SC decision making
Agile SC execution
Impacts on SCM



Analyzing the vast amounts of data generated within supply
chain processes can help to improve efficiency
Instant cloud access and big data analysis increase SC
flexibility and improve SC network monitoring
Simulation of supply chain structures can increase the
operational visibility and thus helps to improve the SCM
processes
Source: Gartner Hype Cycles, Gartner Group, 2013
14
Supply Chain Segmentation aligns customer channel demands and supply response
capabilities to optimize profitability across each segment
Trend
Star
Segmentation
SC Segmentation includes identifying, assessing and profiling
supply chain characteristics, such as:
 Product volume, life cycle stage and quality expectations
 Geographic location and transportation mode
 Volume demand and service expectations
 Commodity versus specialized items
 Lead time required and expected lead time
 Production flexibility required
 Multi-source versus single-source supplier
Supply chain segmentation enables a company to
effectively plan the different supply chain models,
taking account of any relevant priorities on shared
resources across the different models.
SC segmentation addresses an increasingly wide
range of customer needs in the most timely, efficient
and profitable manner possible for each
differentiable need
Segmentation trends



SC Segmentation design
SC Segmentation planning
SC Segmentation operations
Impacts on SCM


Improved planning reliability for complex supply chain
configurations
Improved prioritization of constraint resources in the
operational and tactical timelines on different
customer/product segments
Source: Supply chain segmentation: a pathway to efficiency and strategic advantage, Earnest & Young Report, 2012
15
Service Orientation in SCM describes the shift from selling products to offering service
solutions coming along with new business opportunities for future SCM
Trend
Star
Service Orientation
Shared service centers and control
tower architectures offer transactional
and reporting support and thus reduce
operating costs
A future shift from products to
service deliveries opens new
dimensions< for SCM business
models
SCM Business Process as a Service will
enhance manufacturing operations and
logistics by leveraging technology to
deliver more differentiated services
Mass customization and
product individualization
offers new digital SC
business opportunities
Service trends






Product to service supply chains
Business process as a Service
Shared service center / Control tower architecture
Software as a Service SC
Mass customization
Impacts on SCM

Focusing on service orientation leads to improved sales
potentials, for instance the SCM after market revenue
potentials driven by multi-vendor markets

Shared service centers and control towers will become
centralized data backbones and thus drive enhanced SCM
planning and execution opportunities
16
Improved algorithms and heuristics leverage economic potentials in SCM optimization
Trend
Star
Optimization
Stochastic models in SC planning
allow better management of
customer rate fluctuations
Workforce Management helps to
optimize capacity and resource
planning in SCM
Cross-functional Inventory
optimization improves time
and cost savings
Algorithms that incorporate
geometric shape design enhance
transportation planning
Optimization trends







Dynamic Risk Management
3D load design
Stochastic SC planning
Workforce Management Systems
Multiechelon inventory optimization
Global sourcing optimization
Impacts on SCM


New mathematical models allow improved accuracy of SC
planning and operations activities
Optimization was and still is a key driver for time and cost
savings in SCM
17
Agenda
▶ Introduction
▶ Appendix
18
References
A subset of researched sources
1.
2.
3.
4.
Gartner Hype Cycle for Supply Chain Planning, Gartner Group, November, 2013
Gartner Hype Cycle for Supply Chain Execution, Gartner Group, July, 2013
Gartner Hype Cycle for Emerging Technologies, Gartner Group, July, 2013
Trends and Strategies in Logistics and Supply Chain Management – Embracing Global Logistics Complexity to Drive
Market Advantage, BVL international, October, 2013
5. 10 Trends for the next 10 years, Supply Chain Management Review, July/August, 2013
6. Future Value Chain 2022 – Industry Initiatives Address Challenges of the Digital World and the Fight for Resources,
Capgemini & The Consumer Goods Forum Report, 2013
7. Digital Marketing, Internet of Things and 3D Printing are Digital-Business-Driven Disruptions for Supply Chains, Gartner
Group, March 2014
8. A Vision of Supply Chain Evolution, MIT Center for Transportation & Logistics, Crossroads 2013 Conference Report, June,
2013
9. Digitizing Manufacturing: Ready, Set, Go!, Capgemini Consulting, PoV, 2013
10. Supply chain segmentation: a pathway to efficiency and strategic advantage, Earnest & Young Report, 2012
19

SCM Trends - Research and Analysis

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