IBMEnvisioning The Future Supply Chain

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The Supply Chain of The Future

What will the global supply chain look like in the future?

Organizations are increasingly recognizing that supply chain excellence provides the ultimate competitive advantage.

The difference between success and failure in the supply chain within the next 10 years and beyond will be the ability to adapt to rapid and critical changes.

The impact of new trends will be significant, requiring radical transformation, focused strategies and effective tactics. Transformation demands a multi-year horizon, and we must begin tomorrow’s transformation today.

It is time to challenge ourselves with topics and questions concerning the future of the supply chain!

Supply Chain in 2020?

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The Role of the Future Supply Chain Leaders

The role of the supply chain leader is at its most significant in terms of impact on modern organizations.

The future supply chain leaders need to start now to scope out strategies that will work in a marketplace that may be vastly different from the one they serve today.

We are creating the supply chain that will be inherited by the next generation of professionals, being crucial to understand the way they think, communicate and collaborate. How will their mindset change over the next decade?

The next generation of supply chain talents will be the driving force behind tomorrow's supply chains

2020

2011FUTURE SUPPLY CHAIN

PRESENT SUPPLY CHAIN

FROM

TO

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Preparing for a Successful Career

Thinking about the future of the supply chain will provide an excellent opportunity for the future leaders to simulate today's and tomorrow's business environment, by partnering with our multinational team in a creative and stimulating journey.

We ask the next generation of professionals to act as CEOs or senior executives to navigate the challenges of developing strategies for the supply chain of the next decade.

Our global team will provide mentorship and guidance in this research endeavor, which will promote academic enrichment and collaboration in the building up of new supply chain models across international boundaries.

Multicultural behavior and global business environments expound essential principles for shaping the skills of the next generation

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Supply Chain Analytics

Business Partner

Processes

Strategy,Operations

& Talent

Analyze & Influence

Client Requirements

Plan Supply & Demand

Distribute & Global

Logistics, Deliver

Manage Strategic Sourcing

Manage Client Contracts &

Orders

Manufacture Products

Cash Management,

Invoice & Payment

Manage Suppliers &

Commodities

Asset Management

Supplier Order

Execution

Proof of Concept Solutions

Procurement & Mfg

Engineering

Fulfill Solutions &

Services

Post Sales Support

Green & SC Social

Responsibility

Supply Chain Functions

In recent years, the supply chain function has assumed an increasingly prominent and integrated role in multinational corporations, growing more complex and significant every day...

In view of that, one of the keys to good decision making is to have relevant information, so that professionals can plan for a different business environment in the future.

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Future Disruptive Trends

Supply Chain has become increasingly vulnerable to disruptions, from natural disasters to the global credit freeze.

The analysis of disruptive trends will help us to envision the future of the supply chain with more clarity to better define strategic objectives and develop actions to achieve them.

So looking from global context / cultural / technological perspectives:

What are the main disruptive trends within the next decade?

How will these trends impact the supply chain from now to 2020 and beyond?

What changes should we implement to cope with these trends effectively?

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Source: 2020 Future Value Chain: Building Strategies For The New Decade - http://www.futurevaluechain.com/downloads/

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Global Supply Chain

Culture

Trans-national / Trans-culturalorganization

12

Client / Employee / Supplier10

Acquisitions11

Technology

Mobile Computing7

Cloud Computing5

Business Media 6

Business Analytics & Optimization

8

Context

Shift in Global Market1

2

Lan

dsc

ape

Op

po

rtu

nit

y

Themes and sub-themes across the supply chain that resonate as key focus areas for the future.

Themes

13

Sustainability

3

Automation9 Governance Models14

Corporate Social Responsibility15

18

17

16Commercialization, Cost Reduction, Shared Svcs, Client Needs, Bold Investment in Differentiating/Premium Capability, Re-Use (multi-enterprise shared value), E2E Cost Management.Value

Eliminate Non-Value Add, Optimization, Customization, Re-Use, Process Improvement. Effectiveness

Tools Become Our Corporate Memory, Location, Strategy Alignment, Recommended Organizational Make-up, Sourcing Recommendations, Use of Acquisitions.

Structure

4 Simplification

Shift in Offerings / Portfolio Mix

Organizational Culture

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Key Questions

Key set of questions to ask in each area

Theme Scope / Meaning / Definition Key Questions

Context

Supply chains in the next decade must take into account the key trends driven through increased globalization, and the forces that have potential to affect the overall performance and structure.

What are the potential disruptive forces in the supply chain? How should major companies react to the risks and opportunities? What is the future of outsourcing and crowdsourcing trends? What should we be doing to take advantage of the opportunities these trends will present to the supply chain?

Technology

The underlying platform and emerging collaboration technologies have potential to disrupt existing paradigm and enable the supply chain of the future.

How does the next generation of supply chain professionals and consumers envision the social media tools of the future? What are their likes, dislikes and requirements for optimal collaboration and efficiency? What models are good for the future of enterprise social tools? How will the end-to-end supply chain be managed with Cloud Computing? How will the 'Internet of Things' impact supply chain management? What technological advancements will be paramount for the supply chain of the future and why? What changes will the use of Business Analytics & Optimization drive in supply chain management?

Culture

Increased globalization, better collaboration and business demands may lead to a more efficient organizational structure and culture which emerges to meet the 20/20 challenge.

What are the key differences and special needs of future employees, clients and suppliers? What are their cultural influences and attributes? What are the cultural norms of the next generation (social behaviors, career paths, technological expectations)? How will global supply chains employ a more trans-national approach (customized to fit a specific region)?

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PHASE 1 (targeted completion mid October)

Insight on how the main disruptive trends will impact the supply chain within the next decade, considering the following key focus areas: global context, culture and technology.

View of the supply chain of the future, identifying where technology will be, assessing the make-up and work patterns of the individuals who will lead the supply chain industry in 10 years.

PHASE 2 (targeted completion early December)

Assessment of the possible game changers that can enable the supply chain of the next decade by improving value, effectiveness and structure.

Proposal of a new mindset for the future professionals to thrive, incorporating the abilities required to explore opportunities over the next decade.

Please give us your opinions, thoughts and ideas!

Summarize into an executive level presentation and paper

Suggested DeliverablesWe ask the next generation of supply chain talents to provide:

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Phase 2

Milestone

Early NovBegin Exploration

Culture

Value Effectiveness Structure

TechnologyContext

Research Landscape

Explore Opportunities

Synthesize2020 Data

Summarize 2020

Recommendations

Educate Communicate

Showcase

Create a Culture

Of Looking Forward

September October November December

4 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25

Suggested Time Frame and Key Milestones

Mid OctComplete Research

Mid Sep Begin Research

Early DecComplete Exploration

Suggested Deliverables: Assessment of the game changers Proposal of a new mindset for the future professionals

Suggested Deliverables: Insight on the impact of the main disruptive trends in the supply chain View of the supply chain in 2020

Phase 1