Software AG has released the company’s top ten predictions for the next year in the manufacturing and supply chain industry, calling 2015 the tipping point for supply chain sentience. Next year, innovative manufacturers will leap ahead by deploying more and better sensors, add more comprehensive automation and increasingly choose local fabrication. Sean Riley, Global Manufacturing & Supply Chain Solutions Director, Software AG noted: “In 2015, we will see manufacturers and their partners accelerate the implementation of initiatives that will deliver on the promise of the Internet of Things. For some companies, this will be a challenge, but for many others it will be a year of great opportunity leading to significant competitive advantage.”

1. TOP TENMANUFACTURING
& SUPPLY
CHAIN
2015
TRENDS
SEAN RILEY
Global Manufacturing and
Supply Chain Solutions Director
Software AG

2. PREDICTION #1:
The Internet of Things (IoT) will
enable extreme industrial innovation

3. PREDICTION #1:
The Internet of Things (IoT) will
enable extreme industrial innovation
SPEED
SCALE
PRECISION

4. PREDICTION #1:
The Internet of Things (IoT) will
enable extreme industrial innovation
SPEED
SCALE
PRECISION
Embedded sensors continuously
streaming data PLUS nonstop analysis
will provide never-before attainable…
1. Supply chain visibility,
2. Production Support,
3. Customer Experience Optimization,
…as innovative manufacturers embrace
the possibilities enabled by IoT

5. PREDICTION #2:
Increased adoption of automation
will help manufacturers create new
revenue streams & lower costs

6. PREDICTION #2:
Increased adoption of automation
will help manufacturers create new
revenue streams & lower costs
Increased servicing of
specialized, automated
equipment will be
needed.

7. PREDICTION #2:
Increased adoption of automation
will help manufacturers create new
revenue streams & lower costs
Increased servicing of
specialized, automated
equipment will be
needed.
Specialized equipment manufacturers will be uniquely positioned to create incremental
revenue streams by offering ‘predictive’ maintenance services when using sensors.

8. PREDICTION #3:
Real-time demand fulfillment will
require tight integration of supply
chain, production, logistics and
marketing

9. PREDICTION #3:
Real-time demand fulfillment will
require tight integration of supply
chain, production, logistics and
marketing
The ability to
sense demand in
real-time and
respond by
changing prices or
promotions
through the
utilization of
segmented
logistics, inventory
and performance
capacities, will
allow for the
optimization of
integrated
responses.

10. PREDICTION #4:
Re-shoring will continue but…
… Supply Chains will remain global, large and complex

11. PREDICTION #4:
Re-shoring will continue but…
… Supply Chains will remain global, large and complex
BENEFITS OF RE-SHORING
Source: http://www.dotnetit.co.uk/blog/article/ERP-UK-Manufacturers-Reshoring

12. PREDICTION #4:
Re-shoring will continue but…
… Supply Chains will remain global, large and complex
Re-shoring will
remain a focus
as manufacturers
seek efficiencies
and innovation.
However…
Supply Chains
will still be
complicated.
Increased
visibility will be
needed, and this
will be solved by
by the ‘Industrial
Internet of
Things’.
BENEFITS OF RE-SHORING
Source: http://www.dotnetit.co.uk/blog/article/ERP-UK-Manufacturers-Reshoring

13. Emerging markets will innovate
and improve to compete with
the re-shoring trend
PREDICTION #5:

14. Emerging markets will innovate
and improve to compete with
the re-shoring trend
PREDICTION #5:
Labor and production in emerging
markets manufacturing has
traditionally been appealing.

15. Emerging markets will innovate
and improve to compete with
the re-shoring trend
PREDICTION #5:
Labor and production in emerging
markets manufacturing has
traditionally been appealing.
However… improvements in innovation and
product quality will keep production facilities
running and entice new facilities to open,
which will compete with re-shoring.

16. PREDICTION #6:
“The Project Economy” will
thrive because of more exacting
customer requirements

17. PREDICTION #6:
“The Project Economy” will
thrive because of more exacting
customer requirements
1. Faster times to market with more specific
products and shorter lifecycles will result in
short-term shifting and outsourcing of logistics
facilities, production and suppliers.

18. PREDICTION #6:
“The Project Economy” will
thrive because of more exacting
customer requirements
1. Faster times to market with more specific
products and shorter lifecycles will result in
short-term shifting and outsourcing of logistics
facilities, production and suppliers.
2. Manufacturers will have to quickly onboard
suppliers and partners to support rapid product
development and match the capabilities and
products desired by customers.

19. PREDICTION #7:3D printing will become central
to manufacturing strategy

20. PREDICTION #7:3D printing will become central
to manufacturing strategy
1. Additive manufacturing will
provide additional flexibility for
service parts or unique products
with short life cycles.

21. PREDICTION #7:3D printing will become central
to manufacturing strategy
1. Additive manufacturing will
provide additional flexibility for
service parts or unique products
with short life cycles.
2. These capabilities will flourish
and will be adopted as a central
part of a manufacturing strategy

22. PREDICTION #8:
Supply chain & operational
resiliency will drive
certainty in the face of risk

23. PREDICTION #8:
Supply chain & operational
resiliency will drive
certainty in the face of risk
Manufacturers will
continue to focus on
maintaining cost and
service certainty ~ even
in the face of adverse
events and risks.

24. PREDICTION #8:
Supply chain & operational
resiliency will drive
certainty in the face of risk
Manufacturers will
continue to focus on
maintaining cost and
service certainty ~ even
in the face of adverse
events and risks.
Scenario and response
planning will require
processes spanning multiple
departments with the ability
to understand forecasted
outcomes, and manage real-
time deviations from planned
outcomes.

25. PREDICTION #9:
Top supply chain & operations
talent will continue to be
highly sought after and
in short supply

26. PREDICTION #9:
Top supply chain & operations
talent will continue to be
highly sought after and
in short supply
1. Competition for talent will reside on
more than just a wage level, but on a
career development level

27. PREDICTION #9:
Top supply chain & operations
talent will continue to be
highly sought after and
in short supply
1. Competition for talent will reside on
more than just a wage level, but on a
career development level
2. Manufacturers that evolve digitally to create
Digital Factories and Digital Supply Chains will
find themselves better positioned

28. PREDICTION #9:
Top supply chain & operations
talent will continue to be
highly sought after and
in short supply
1. Competition for talent will reside on
more than just a wage level, but on a
career development level
2. Manufacturers that evolve digitally to create
Digital Factories and Digital Supply Chains will
find themselves better positioned
3. By leveraging The Internet of Things (IoT) or
Streaming Analytics as part of their support and
development system, Manufacturers will improve
their business and attract and retain top talent.

29. PREDICTION #10:
Government funding will spur
collaboration and standards
creation, even among competitors

30. PREDICTION #10:
Government funding will spur
collaboration and standards
creation, even among competitors
With the rise of IoT and the ability to make massive amounts of data
actionable through streaming analytics and dynamic, structured
collaboration, governments will continue to increase funding for groups to
create a new manufacturing revolution.

31. MEET THE AUTHOR
Sean Riley is a Supply Chain ‘pro-to-know (http://bit.ly/1AUAjTl)
and has spent more than a decade supporting supply chain, logistics
and manufacturing operations. He is currently director of Global
Manufacturing and Supply Chain Solutions at Software AG
These slides representative a sample of Sean Riley’s “Top 10
Manufacturing and Supply Chain Trends for 2015.”
To receive the full report, please go here: http://bit.ly/1ynK8Iq