Envisioning The Future Supply Chain
IBM
© 2011 IBM Corporation
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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© 2011 IBM Corporation
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
TO
FUTURE SUPPLY CHAIN
2011
FROM
PRESENT SUPPLY CHAIN
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© 2011 IBM Corporation
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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© 2011 IBM Corporation
Supply Chain Functions
Strategy,
Operations
& Talent
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Supply Chain
Analytics
Green & SC
Social
Responsibility
Analyze &
Influence
Client
Requirements
Plan Supply
& Demand
Business
Partner
Processes
Manage
Strategic
Sourcing
Manage Client
Contracts &
Orders
Distribute &
Global
Logistics,
Deliver
Manage
Suppliers &
Commodities
Manufacture
Products
Cash
Management,
Invoice &
Payment
Supplier
Order
Execution
Proof of
Concept
Solutions
Asset
Management
Procurement
& Mfg
Engineering
Fulfill
Solutions &
Services
Post Sales
Support
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.
© 2011 IBM Corporation
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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© 2011 IBM Corporation
Source: 2020 Future Value Chain: Building Strategies For The New Decade - http://www.futurevaluechain.com/downloads/
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© 2011 IBM Corporation
Themes
Themes and sub-themes across the supply chain that resonate as key focus areas for
the future.
Global Supply Chain
Technology
Landscape
Context
Culture
1 Shift in Global Market
5 Cloud Computing
10 Client / Employee / Supplier
2 Sustainability
6 Business Media
11 Acquisitions
3 Shift in Offerings / Portfolio Mix
7 Mobile Computing
12 Trans-national / Trans-cultural
4 Simplification
8 Business Analytics &
Optimization
9 Automation
organization
13 Organizational Culture
14 Governance Models
Opportunity
15 Corporate Social Responsibility
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16
Value
Commercialization, Cost Reduction, Shared Svcs, Client Needs, Bold Investment in Differentiating/Premium
Capability, Re-Use (multi-enterprise shared value), E2E Cost Management.
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Effectiveness
Eliminate Non-Value Add, Optimization, Customization, Re-Use, Process Improvement.
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Structure
Tools Become Our Corporate Memory, Location, Strategy Alignment, Recommended Organizational Make-up,
Sourcing Recommendations, Use of Acquisitions.
© 2011 IBM Corporation
Key Questions
Key set of questions to ask in each area
Theme
Scope / Meaning / Definition
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.
Key Questions
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?

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?

Technology
The underlying platform and emerging
collaboration technologies have
potential to disrupt existing paradigm
and enable the supply chain of the
future.
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?

What are the key differences and special needs of future
employees, clients and suppliers? What are their cultural
influences and attributes?

Culture
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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 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)?

© 2011 IBM Corporation
Suggested Deliverables
We ask the next generation of supply chain talents to provide:
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
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© 2011 IBM Corporation
Suggested Time Frame and Key Milestones
September
4
11
18
October
25
2
9
16
November
23
30
6
13
20
December
27
4
11
18
25
Research Landscape
Context
Technology
Culture
Phase 1
Mid Sep
Begin Research
Synthesize
2020 Data
Mid Oct
Complete Research
Suggested Deliverables:
 Insight on the impact of the main disruptive trends in the supply chain
 View of the supply chain in 2020
Explore Opportunities
Phase 2
Value Effectiveness Structure
Early Nov
Begin Exploration
Summarize
Educate
2020
Communicate
Recommendations
Showcase
Early Dec
Complete Exploration
Suggested Deliverables:
 Assessment of the game changers
 Proposal of a new mindset for the future professionals
Create
a Culture
Of Looking
Forward
Milestone
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© 2011 IBM Corporation