The document discusses the modern supply chain and key trends driving changes. Supply chains must be demand-aware, digitally executed, and have greater visibility across global networks. This requires data-driven decision making and analytics to close the growing "analytics gap". Modern supply chains also need to be resilient, agile, and leverage real-time data and collaboration with partners.

1. An IDC InfoBrief, sponsored by Qlik | July 2015
Present and Future
The Modern Supply Chain

2. pg 2
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
Macro-Drivers for Change
The external manufacturing environment is a highly
dynamic, ever-changing landscape. The supply chain
must both anticipate and adapt to that change.
Quality
Customer centric
supply chains must
ensure the highest level
of product quality from
increasingly distributed
global supply
networks and provide
consistently high levels
of customer service.
Demand Awareness
There is little question that supply
chain organizations can benefit
from greater visibility into the
cadence of demand. The ability to
better manage service performance
and late-stage assembly/
postponement through enhanced
insight and more accurate forecasts
is clearly a necessity.
Always On
The world is moving to a
“24 x 7 x 52”mentality with
expectations for round-
the-clock shipment and
customer service support.
Manufacturing supply chains
will be forced to also adopt
a continuous logistics and
supply chain model.
Digitally Executed
With mobile tools,
the Internet of Things
(IoT), or emerging
technologies like 3D
printing, the world is
going digital and the
supply chain needs
to adapt.
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3. pg 3
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
As manufacturing supply chains are asked to be faster and more responsive, the use of real-time data
becomes more important. Global demand leads to global supply which means globalization of data.
Analytics in the Supply Chain
Data growth is not the problem, but the growing
analytics gap is!
Massive amounts of data
(extreme granularity)
Useful, relevant, and
timely information
Actionable insights
Social
ERP +
IoT
Analytics
Gap
2005 2010 2015 2020 2030
Data
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4. pg 4
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
Demand
Aware
Supply
visible
Innovation
connected
Supply chains must be demand-aware using
downstream demand signals in forecasting. The
business must be aware of potential demand shifts, but
may or may not be using those signals across the full
supply chain.
Supply chain resiliency is critical to respond to
unanticipated changes. Just as you“cannot improve
what you don’t measure,”you“cannot respond to
something you don’t see.”
The notion of visible supply is central to the future
supply chain and not just to Tier 1 supply, and the
notion of‘innovation networked’is the third element
that will inform the process of developing new products.
It’s no longer true that research and development is the
key generator of new ideas. With a network of diverse
sources for potential innovation, companies that do not
leverage these sources will not be successful.
The Networked Supply Chain
What are the Key Success Factors?
A supply chain that is data
driven, demand aware,
and digitally executed.
With visibility, resiliency,
and robust analytics as
underlying principles.
Resellers Suppliers
Supply
chain
planning
Academics
Consumers
Contract
manufacturers
Supply
chain
design
Customers
Customers LSPs
Supply
chain
execution
Suppliers
R&DConsumers
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5. pg 5
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
I know
what I
know
I know
what I don’t
know
I don’t
know
what I don’t
know
Supply chain
intelligence
I know
what I
know
I know
what I don’t
know
I don’t
know
what I don’t
know
Supply chain
intelligence
Visibility must be timely but not
necessarily in real time. Some elements
of visibility — product movement,
for example —will be required in real
time; however, other elements, such as
inventory positions, will likely not require
that same level of granularity.
Collaboration and Transparency
Visibility must encompass the networked supply
chain to include suppliers, customers, and third-party
logistics providers.
TransparencyYields Intelligence
Business Collaboration
Within our business (i.e., between
supply chain and marketing or sales)
Upstream with suppliers (i.e., buy-side
B2B collaboration)
Within the supply chain (i.e., between
planning and education)
Downstreram with customers (i.e., sell-
side B2B collaboration)
With external logistics
providers
(% of respondents)
30
25
23
14
12
Goals
• Increase intra- and inter-company visibility
and collaboration
• Leverage knowledge to ensure best outcome
• Sharpen emerging market focus
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6. pg 6
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
Supply chain planning is evolving toward rIBP. SOP
remains important but firms need to prepare for the
evolution to integrated business planning. As technology
evolves, the business process should be reevaluated.
Supply chain planning must consider the impact of
decisions made across the entire value chain. Consider
rIBP as the holistic business process that connects
planning functions across an entire organization to
enable the alignment of operational and financial
performance.
“Rapid”means that in supply chain planning, speed is as
important as accuracy. To truly balance efficiency and
service, being able to rapidly make decisions and act on
them results in better customer service and competitive
advantage.
To ensure success in implementing rIBP, IT must work
with a cross-functional team to ensure that business
processes are created with input from all stakeholders
and that requirements align with IT capabilities.
Supply Chain Planning
By 2018, 75% of
manufacturers will be
coordinating enterprise-
wide planning activities
under the umbrella of
rapid integrated business
planning (rIBP).
Supply
Chain
Evolution
Transparency
Traceability
Complex,
Dynamic
Value Chains
Emerging
Markets
Converging
Technologies
Truth In Data
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7. pg 7
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
Most manufacturer networks are designed to fulfill
large customers with“full pallets”on“full trucks.”Yet
there is increasing demand by customers for omni-
channel fulfillment along with higher demand for
variety and customization.
Supporting rapid and diverse delivery requirements
from a large, centralized DC is not going to work
for this new paradigm. This is leading many firms to
explore alternative options such as micrologistics
networks even if not an owned or proprietary one and
partnering with a large, global third-party logistics
providers. Customer and product segmentation will
inform these emerging networks.
Rapid change means constantly evaluating the
efficacy of networks and seeking opportunities for
improvement. With the variety of omni-channel
and fulfillment options now available, firms should
continuously evaluate the impact of fulfillment
demands on the network.
Supply Chain Execution
By 2017, 50% of
manufacturers will explore
the viability of micrologistics
networks to enable the
promise of accelerated
delivery for select products
and customers.
Supply
Chain
Evolution
Transparency
Traceability
Complex,
Dynamic
Value Chains
Emerging
Markets
Converging
Technologies
Truth In Data
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8. pg 8
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
Network design is now an ongoing, dynamic
process – no longer‘set it and forget it’. Modeling
and‘what if’scenario planning are critical
capabilities for the modern supply chain.
Supply chain optimization is about identifying
the best design to support customer needs and
business goals. To accomplish this, firms must look
beyond functional applications to solutions that
provide robust modeling and simulation. Supply
chain design and modeling is a dynamic process
that should be a regular contributor to both
strategic and tactical discussions.
Capabilities
Companies should encourage input from all
internal functional areas as well as from key
suppliers and customers. The supply chain is a
robust entity with a lot of moving parts, many with
competing objectives, so optimization requires
input from each element while considering the
impact on every other element.
Supply Chain Design
In 2015, half of all
manufacturers will be
actively employing supply
chain design and modeling
technologies to dynamically
assess both the demand
and supply across supply
chains.
Supply
Chain
Evolution
Transparency
Traceability
Complex,
Dynamic
Value Chains
Emerging
Markets
Converging
Technologies
Truth In Data
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9. pg 9
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
Data generation can come from any source, internal and
external. It requires comprehensive and fast analysis, and
then ubiquitous consumption. Broader networks won’t
work efficiently without this“information loop.“
3rd Platform Priorities: Recent IDC surveys rank Big Data
and Analytics first in importance (4.2 on a 1-5 scale),
Mobility second (4.1), Cloud Computing third (4.0) and
Social last (3.9). All are viewed as significantly disruptive.
The 3rd Platform for the
Supply Chain
New Buying CentersImmediacy
Future of Work Efficiency
Personalization
Abundance
Continuous Industry Transformation
The 3rd Platform for the Supply Chain
ERP Cloud
Social On-premiseData collection and analytics
IoT Mobile
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10. pg 10
An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
Today’s supply chains operate in a fast-paced, dynamic
marketplace. Expectations from customers and
consumers continue to put pressure on fulfillment
performance. The supply chain must be able to adapt
and anticipate any and all process changes.
The Bottom Line
Questions for Readiness Assessment
• Is the company using commerce networks today, and if so, what have been the early insights?
• Are collaboration efforts, either internally across supply chain domains or externally with suppliers and
customers, productive? If not, why not?
• What kind of transparency exists in the supply chain? Is there visibility into key functions and activities?
• Are supply chain domains integrated — either within each or across the breadth of the chain?
• Do supply chain employees have access to the information they need when they need it?
• Are the right analytics available? Are the right processes being analyzed to meet key metrics?
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11. An IDC InfoBrief, sponsored by Qlik
Present and Future
The Modern Supply Chain
pg 11
Qlik enables organizations to explore supply
chain data and processes in unprecedented ways,
discovering hidden insights which result in better
decision making and drive improvements in supply
chain operations.
Built on the industry’s leading Data Discovery
platform, Qlik supply chain solutions help
customers connect and manage the supply chain
from end to end while increasing visibility, reducing
risks, and optimizing operations.
Supply Chain Solutions
All IDC research is © 2015 by IDC. All rights reserved. All IDC materials are licensed
with IDC’s permission and in no way does the use or publication of IDC research
indicate IDC’s endorsement of Qlik products/or strategies.
With Qlik, organizations can analyze, visualize, and explore relationships between
complex data sources. The result is a more connected customer-centric supply
chain that drives better business results and a competitive edge.
For more information, visit qlik.com/supplychainsolutions
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