If the past is an indication, today's supply chain bears little resemblance to tomorrow's. For one thing, manufacturers are working to find new ways to extract data-driven value and leverage mobile and cloud-based applications for simple anytime/anywhere access that will allow them to be agile and responsive to changes.
This will be a key shift in supply chain strategy in the coming year, according to a report released last month by IDC Manufacturing Insights titled Supply Chain Strategies Predictions for 2014: Worldwide Manufacturing: The Emergence of the 3D Value Chain. Indeed, as we have recently discussed on EBN, the value extracted from big data will lead the supply chain market to lead in revenues throughout the year 2018.
The 3rd Platform Technologies: The Four-Pillar Technologies
One of the reasons behind productivity growth in manufacturing has been the increasing adoption of information and communications (ICT) technologies. Advancing throughout 2014, manufacturers will continue to focus on inducing and supporting productivity improvements as a top priority.
This is done by the adoption of new technology trends, which IDC calls the The Four-Pillar Technologies:
- Big data and analytics
- Social collaboration tools
To succeed and thrive, manufacturers will begin to build “3D value chains,” according to IDC Insights. Those three D's include:
- Demand Oriented: Business resources have to be closely and strategically aligned with customer requirements.
- Data Driven: Sometimes applied to management productivity for making managers use data to make better decisions, which in turn makes them more effective in driving substantial increase of revenue.
- Digitally Executed: Built on the first 2Ds
The 3D value chain
Manufacturing Insights operational resiliency is clearly dependent upon being demand aware and data driven, but it is also about digital execution, according to Simon Ellis, practice director of Global Supply Chain Strategies for IDC. Leveraging data to broaden and extend “supply chain intelligence,” he said in a recent webinar.
Modernize existing systems while also trying new approaches
Manufacturers need new ways to extract data-driven value, leveraging mobile and cloud. Both cloud technologies and mobile applications are of paramount importance in today's supply chain success. “Cloud and managed serviced support faster deployment, flexible cost structure, and broader reach to supplier/partner base,” Ellis said.
A broader adoption of cloud-based tools contributes to the modernization of the supply chain and should be an investment priority. This includes edge applications like transportation management and orchestrating capabilities such as sales and operations planning.
Let us know how you plan to improve the Four-Pillar Technologies in your organization this year. We want to hear your ideas on building a 3D value chain.