An IDC InfoBrief, sponsored by Qlik | July 2015

Present and Future

The Modern Supply Chain

pg 2

An IDC InfoBrief, sponsored by Qlik

Present and Future

The Modern Supply Chain

Macro-Drivers for ChangeThe 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.

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 ChainData 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

Dat

a

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 ChainWhat 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

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 TransparencyVisibility must encompass the networked supply chain to include suppliers, customers, and third-party logistics providers.

Transparency Yields Intelligence

Business CollaborationWithin 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

pg 6

An IDC InfoBrief, sponsored by Qlik

Present and Future

The Modern Supply Chain

Supply chain planning is evolving toward rIBP. S&OP 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

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

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

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 E�ciency

Personalization

Abundance

Continuous Industry Transformation

The 3rd Platform for the Supply Chain

ERP Cloud

Social On-premiseData collection and analytics

IoT Mobile

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?

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