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Supply Chain Evolution—Tectonic Shifts in the Value Chain 

  • March 2016
  • -
  • Frost & Sullivan
  • -
  • 58 pages

Summary

Table of Contents

Supply Chain Evolution—Tectonic Shifts in the Value Chain : Emergence of the Industrial Internet of Things (IIoT) is Poised to Disrupt Existing Supply Chain Operations

This Frost & Sullivan study examines the transformations in global supply chains mainly based on the key disruptive themes that have sprung from the Industrial Internet of Things (IIoT). It also analyses the challenges faced across the supply chain, market motivators, and the implementation approach of key applications within each theme. In this research, Frost & Sullivan's expert analysts thoroughly study the following disruptive themes: Smart products, Control On-the-go, Track and Trace, Advanced Supply Chain Management (SCM), Big Data and Analytics, and Advanced Logistics. The research focus is primarily on supply chain operations conducted across key industrial sectors (process and discrete industries).

Key Findings

Supply Chain Industry: Key Findings, Global, 2014

Frost & Sullivan has identified 6 themes that are expected to revolutionize the current supply chain related activities i.e. smart products, control-on-the-go, track and trace, advanced Supply Chain Management (SCM), Big Data and analytics, and advanced logistics.

The high growth of wireless sensors (5 years CAGR* of %– %), coupled with the breadth of applications using cellular communication, has provided diverse value chain participants a means to monitor their movable assets.

In contrast to traditional industrial handheld devices, the high penetration of smartphones (5 years CAGR of %) enables personnel across the supply chain a cost-effective means to monitor key metrics and streamline MRO** related

Compliance with regulatory mandates across vertical markets and geographies has paved the way for wide-scale acceptance of track and trace solutions that allow key stakeholders to authenticate product at various transit points across the supply chain

In addition to the adoption of SCM software used to oversee key supply chain operations, solution providers are targeting niche areas such as workforce optimization and fleet management (5 years CAGR of %– %) to improve the overall customer experience

The influx of Big Data across the supply chain, in particular unstructured data, has resulted in key value chain participants looking for stateof-the-art analytical platforms to convert raw data into actionable insights that improve the overall operational efficiency.

Key Questions This Study Will Answer

- What are the key activities in a traditional supply chain for industrial markets?
- What are some of the key themes driven by the advent of the IIoT?
- What are some of the supply-chain related challenges faced by end users and which themes address
- the aforementioned challenges?
- What are some of the key process variables monitored using intelligent devices and sensors and what are some of the key applications where end users are looking to implement such devices?
- What are the benefits of using a commercial smartphone compared to industrial grade handheld devices and what are some key metrics monitored using the same across the supply chain?
- Why are track and trace solutions gaining wide-scale acceptance in the current market and what is the size of the opportunity for traceability software?
- In addition to traditional SCM solutions, what are some the niche areas that solution providers are looking at further to optimize operations?
- What are some of the key data sources across the supply chain and how are end users leveraging such data to gain insights?
- What are end users doing to reduce logistical expenses and improve their transportation operations?

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