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2017

Supply Chain Briefing

McKinsey Report Predicts 20% Growth in Manufacturing by 2025
According to Industry Week, a McKinsey report predicted manufacturing GDP would grow to $3 trillion by 2025  - a 20% increase!  Large U.S. firms have outperformed their global counterparts, according to the new survey, "Making it in America: Revitalizing U.S. Manufacturing" by The McKinsey Global Institute.  What we knew all along! 

Of course, it has been tougher for the smaller firms supporting these larger firms which has negatively impacted the middle class.  However, there is hope.  Demand is rising at home and abroad with VAST opportunity to export.  Value chains are evolving to a U.S. advantage especially those in advanced industries.  Rapid customization and consumer preference can drive additional firms to manufacture in the U.S.  Are you ready?

 

Who, What, When and Where Will Impact Manufacturing?
Are you ready for the coming wave of manufacturing?  Do not wait until you miss your opportunity as customers expect QUICK deliveries, RAPID customization and a proactive, excellent customer experience.  Have you thought about which technologies to leverage to get ahead of the curve so that you can take advantage of the opportunities as they arise?  What can you automate? 

And although technology is paramount to success in this new world, the core tenets remain intact.  Do you know your customers?  Why will they purchase from you vs. your competition?  How can you stand out from the crowd?   Can you create an experience for them?   Although important to ponder, don't bother unless you have also thought about your human capital.  Where should you shore up your talent to get ahead of the curve?  Plan for success; don't wait for it to pass you by.

The global logistics industry will grow from its current hefty size of $8 trillion to $23 trillion by 2023 – what a sharp contrast!  Have you thought about how to be viable with these massive shifts going on?  If not, you sure should as it is coming and will just pass you by. 

Key Aspects in Upcoming Logistics Innovation
What is noteworthy in logistics innovation?  Several keys to success include:

  1. Interestingly, blockchain arose again.  It could completely change the landscape, so it’s worth paying attention.
  2. Next generation technology and machine learning – there is more and more discussion on this topic everyday.  This gets into artificial intelligence, as well.  
  3. Autonomous vehicles – last we heard, it will be here by 2020.  Time flies – undoubtedly, it will be here before we realize it.  There is vast opportunity to address a critical component of speed in the supply chain – keep trucks moving more frequently to deliver goods more quickly in a safe and automated way with minimal human intervention.  It isn’t all theory; there are road tests being performed in Southern California in conjunction with governmental entities.
  4. Capacity aggravation / visibility – there is a large potential for this topic.  One example is in reviewing large amounts of data for carriers.  Convoy has built an app to match trucking companies with shippers that need to move freight.  The speaker talked about how they could even tell which trucker might be interested in a particular route or to get home for a special occasion.  Very interesting!

Disruption and Progress
There is vast disruption with emerging technologies in this rapidly growing $8 trillion dollar industry.  Perhaps we should pay attention.

lisaanderson

Blockchain Anyone?

Posted by lisaanderson Dec 15, 2017

One of the most fascinating speakers at the APICS conference talked about the value of blockchain.  I knew to pay attention because the former head of the Drucker supply chain program also specifically noted the down-the-line value of blockchain, and I’m glad I did! 

Immediate Benefits of Blockchain
Blockchain had some immediate potential down-the-line application for a key client.  It is certainly good to be on top of emerging technologies and related applications.  Are you considering out-of-the-box applications you might have dismissed previously?

reshoring

Bitcoin and Blockchain
The first application of blockchain was bitcoin - which didn’t really inspire my interest.  On the other hand, when you look at it like a revolutionary shared ledger technology which is immutable, immediate, collaborative, secure and permanent, it opens the mind to many possibilities.  Who wouldn’t wish to track something like fish or paintings from origin through transportation to delivery and have technology close the loop with payment, knowing it is authentic?  It is interesting that there is a counterfeit prevention aspect tied into this technology, as well.

Blockchain provides benefits to complicated processes.
Blockchain provides a potential solution for complex, multi-party, high-friction processes.  There seem to be vast possibilities such as VMI, conflict minerals, customs clearance, cold chain for foods, supplier certification and much more.  Do any of these types of situations apply to you?  Or could they? 

Why wait until the technology is officially launched before exploring.  It could become an integral aspect of supply chain technology, and you do not want to be left in the dust.

Did you like this article? Continue reading on this topic:

Robots, IoT , AI, Autonomous Vehicles and More - Update from APICS 2017

I was a panelist at Mobility 21's (the Southern California Transportation Coalition) session, "Speed to Delivery: Goods Movement's High-Tech Future".  We had a fascinating discussion with a panel of experts from Walmart, Caltrans, the California Transportation Commission and Paul Granillo, Kome Ajise, Elizabeth Fretheim, Fran Inman.  One area with 100% agreement is that the Amazon Effect (inclusive of rapid deliveries, small shipments and easy returns) is the expectation.

 

For example, according to Fran, e-commerce is rising, master plan business parks are growing, omni-channel is taking over, the need for flexibility is at an all-time high and much more.  We live in a complex environment and transportation is gaining a larger role.  How will we deliver significantly more to Amazon-type customers?  How will we address the challenges of the last mile?  And certainly, in California specifically, how will we do all this with the traffic congestion? And with dramatically less emissions and with greater sustainability?  Will Amazon start competing with UPS and FedEx and what sort of impact will it have?  Let alone autonomous vehicles....

 

What Should We Consider and/or What Impacts Could Arise?

Who knew transportation could be so complex?  As much as goes into transportation, consumers are trained to think of it as "free" (think Amazon Prime) and quick.  That certainly provides two conflicting forces!

A good start is to absorb the vast topic transportation has become.  Are you or someone in your company thinking about transportation from a strategic viewpoint?  It doesn't matter whether you have zero e-commerce and transportation doesn't seem to be an issue.  Your transportation assets and shared infrastructure will likely be impacted by the vast amount of change taking place.  What might occur?  Will UPS and FedEx respond to Amazon's moves?  Will truck capacity increase with autonomous vehicles?  Will your loads become more expensive because trucking companies have to invest in new infrastructure or will they becomes less expensive since an autonomous driver does not have to sleep and rest after 11 hours?  And if you own your own fleet, there are many rules and regulations to consider.

Join us at APICS Inland Empire's executive panel and networking symposium to learn about the latest transportation trends, technologies and more.

I've been attending APICS 2017 in San Antonio, and there is LOT of talk about the digital transformation of the end-to-end supply chain. I listened to executives from J&J, Cisco, Microsoft, Whole Foods, Caterpillar, and innovative high-tech, rapidly growing companies, and the consensus is: Pay attention to technology. There is an opportunity to learn about the latest technologies such as robots, IoT, artificial intelligence, autonomous vehicles, blockchain and more at APICS Inland Empire's executive panel and networking symposium on "Leveraging Technology for Supply Chain Success". More important than understanding these cutting edge technologies, is thinking about how to apply them for end-to-end supply chain success. Are you taking the time to think about the impacts to your business and your career? Join us on Nov 4th.

What Should We Consider and/or What Impacts Could Arise?

To get the juices flowing in advance of this important industry event, start thinking about the potential impact to your business. For example, IoT has a lot of benefit for predicting machine maintenance needs. However, it can go far beyond this simple use. I'll dedicate another article to just this topic as the APICS 2017 speaker from Microsoft had several compelling examples which will not only radically change how we perform jobs but it will also radically change the types of people we look for and the background/training that might give an interested candidate an exciting job.

Blockchain can have an enormous impact when considering the increasing need for transparency and risk mitigation with all the security issues that have occurred lately. The potential impact could be enormous for connecting partners and transactions in the end-to-end supply chain in a fast, secure and informed way.

Autonomous vehicles for all intensive purposes are "here". It will take some time with testing and regulations but there will be interesting impacts when considering some of the issues that plague transportation today. For example, drivers cannot drive more than 11 hours a day; however, an autonomous vehicle could.  What would that mean for the speed and cost of deliveries?

Join us to learn about these technologies and more.