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Top 10 Manufacturing and Supply Chain 2015 Trends

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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.”

Published in: Technology

Top 10 Manufacturing and Supply Chain 2015 Trends

  1. 1. TOP TENMANUFACTURING & SUPPLY CHAIN 2015 TRENDS SEAN RILEY Global Manufacturing and Supply Chain Solutions Director Software AG
  2. 2. PREDICTION #1: The Internet of Things (IoT) will enable extreme industrial innovation
  3. 3. PREDICTION #1: The Internet of Things (IoT) will enable extreme industrial innovation SPEED SCALE PRECISION
  4. 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. 5. PREDICTION #2: Increased adoption of automation will help manufacturers create new revenue streams & lower costs
  6. 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. 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. 8. PREDICTION #3: Real-time demand fulfillment will require tight integration of supply chain, production, logistics and marketing
  9. 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. 10. PREDICTION #4: Re-shoring will continue but… … Supply Chains will remain global, large and complex
  11. 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. 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. 13. Emerging markets will innovate and improve to compete with the re-shoring trend PREDICTION #5:
  14. 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. 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. 16. PREDICTION #6: “The Project Economy” will thrive because of more exacting customer requirements
  17. 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. 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. 19. PREDICTION #7:3D printing will become central to manufacturing strategy
  20. 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. 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. 22. PREDICTION #8: Supply chain & operational resiliency will drive certainty in the face of risk
  23. 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. 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. 25. PREDICTION #9: Top supply chain & operations talent will continue to be highly sought after and in short supply
  26. 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. 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. 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. 29. PREDICTION #10: Government funding will spur collaboration and standards creation, even among competitors
  30. 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. 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

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