The State Of Today’s Competitive Supply Chain: Digital, Smaller and More Resilient

In the past, supply chain and the manufacturing industry have been relatively slow in welcoming opportunities presented by the digital industry. As technology advances rapidly, it might be time to embrace the trend.

In 2017, we will see a lot of reaching points in terms of the Internet of Things (IoT) – whether it’s through recognizing the crucial strength and impact offered by this phenomenon or through dealing with a desperate shortage of operations talent. Digital technology will present itself as a business initiative by aiding responsiveness and faster execution.

The factors that manufacturers and supply chain managers will have to address in 2017 to become competitive and rapidly forge ahead are the following:

Do Not Disrupt

Shippers will begin to seek for a much more resilient supply chain as disruptions will impact supply chains pressed for spare capacity and inventory severely. A resilient supply chain will be critical to identify, manage and mitigate supply chain risks.

Obsess Over Digital

90 percent of supply chain execution expenditure will be in support of cloud-based applications while supply chain planning applications will remain on premise, by the time we reach 2020. The IoT will allow companies to digitally connect physical assets and enable flow of data across the value chain, linking every piece of the product lifestyle.


Additionally, predictive analysis will provide ground for condition analysis and real-time visibility. Taking this on at an early stage will adopt advance technologies such as blockchain, which will help shippers with gross weight verification for example. Digital transformation will be crucial when it comes to taking advantage of the available value of these technologies in the supply chain.


Short-term forecasting will disappear due to increased implementation of IoT as there will be availability of sensor data that demands sensing and robust supply chain visibility. However, this will not take place for manufacturers who do not have a supply chain resiliency program in place.

Small Is Better

Taking note of Amazon’s logistics network, manufacturers will begin looking closely at the feasibility of using a micro-logistics network. A huge chunk of this aspect will depend on the ability to work with 3PL providers and shift from a dedicated – to a shared – facility supply chain model.

Shrinkage May Occur

Transoceanic container shipping, third-party distribution services, and over the road carrier services (trucks) will consolidate due to either financial difficulties or the need for strategic capacity. This merger will mean contract rationalization and rate fluctuations and will create a level for 3PL agreements to be focused more on value than price.


Source: inboundlogistics

Also find out the 7 Ways Data Is Restructuring The Supply Chain!