2016 – A Year of Change


Supply chain and technology hot spots for 2016.


The numbers are in. 2015 was a hot year in the supply chain market! All category sales were up and pipelines are record high for many providers for 2016. Early discussions with major providers indicate hiring plans to keep up with implementation and new customer opportunities.

What’s driving all this? We provide our view of 2016 in this graphic. Revolutionary changes in business from manufacturing to retail are driving supply chain software sales. Retail competition with Omni-channel is intense and Manufacturers are redefining themselves due to Industrial Manufacturing 4.0-type initiatives. These are driving change as well in industries that support them — transportation and fulfillment services.

End-users and their management are becoming more digitally oriented and more analytical. They are out of the office, on the road, working remotely. Federated business models are increasing digitally integrated processes between trading partners. Businesses are integrating and rely on their IT systems like never before.

2016 will be a record year for supply chain as enterprises race to keep up or overtake competition with innovative new practices and a new generation of digital customers.

2016 — What it Will Be

What’s Hot for 2016

Digital Manufacturing

Multi-modal Transportation

Redesigning Distribution Networks and Warehouse


Home Delivery


What’s it about?

Digital Manufacturing is integrating manufacturing across business processes from design through to customer.

Shipper and freight forwarders are seeking to integrate logistics information, including trade data

Intelligent Fulfillment
Retailers are building or redesigning warehouse space for last mile, 24/same day fulfillment.
Manufacturers are revising warehouses for more services and Omni-responsiveness

Understanding shopping patterns by Channel

Rethinking store and warehouse to provide more services and task level changes. The top challenge for retailers with multi-models from click and collect, store kiosk, ship to home, new store formats.

Digital shopping
Seamless customer experience

Profitable last mile
Retailers and manufacturers are rethinking their services and transportation to the end customer through regionalization strategies and last mile/home delivery TM/and parcel shipping.

Top Technologies

1. Industrial IoT
IoT has taken on a more mature definition for manufacturers as they seek to connect their factories, conveyances and products to the internet.
2. Flexible Manufacturing integration across the supply chain means close to customers — more channels, more customization. Manufacturers will revise their Advanced Planning, scheduling, and supplier collaboration to become more agile.

1. Cloud TMS is a big seller across the world.
2. TMS providers are investing heavily in multi-mode
3. Automation of trade data to comply with automatic filing for customers and security filings
4. Tracking of goods to manage more deft/agile distribution and reduce risk

1. WMS is having record sales as enterprises refit for fast more intelligent response.
2. Item level inventory accuracy methods — scanning with RFID and/or bar-coding
3. Order Mgmt modules within the WMS
4. TM Pooling/ Consolidation modules

1. Omni-channel inventory
2. Allocations, Replenishment and Forecasting More rapid fine grain forecasting analytics
3. Omni-task management based on fulfillment choices

1. Last mile TM
2. Labor Mgmt
to align skills and resources to delivery service requirements
3. Parcel software

What will be next?

Digital Products will call for service and consumables directly to manufacturer.

Development of new logistics models to support digital processes and products.

More private branded fleets will drive complex carrier selection and routing.

More regionalization of logistics services will drive the need for more integration with demand and fulfillment points.

Multiservice DCs to support returns processing and redistribution (store to outlet, etc).

Pop-up warehouses to support digital products and customers.

Customer Insights to redefine segments based on fine grain analytics from big data

2015 saw a big spike in pilots. Many will turn into roll-outs as retailers seek item level precision to feel fulfillment, merchandize planning and in store experience.

Digitizing the in-store customer
Once retailers get the web and warehouse in order they will turn to more digital analytics in the store to understand shoppers within the retail space. More sensors, RFID pattern analytics for shoppers and sales assists to increase sales.

More regional seasonal/pop-up warehousing to support seasonal customers.

The digital home will send more signals to retailers for automatic fulfillment.

To view other articles from this issue of the brief, click here.

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