IBM

Envisioning The Future Supply Chain

2011 IBM Corporation








2011 IBM Corporation 2
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 tomorrows
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
2011
FUTURE 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?



2011 IBM Corporation 7

Source: 2020 Future Value Chain: Building Strategies For The New Decade - http://www.futurevaluechain.com/downloads/
2011 IBM Corporation 8
Global Supply Chain
Culture
Trans-national / Trans-cultural
organization
12
Client / Employee / Supplier
10
Acquisitions 11
Technology
Mobile Computing
7
Cloud Computing 5
Business Media 6
Business Analytics &
Optimization
8
Context
Shift in Global Market
1
2
L
a
n
d
s
c
a
p
e

O
p
p
o
r
t
u
n
i
t
y

Themes and sub-themes across the supply chain that resonate as key focus areas for
the future.
Themes
13
Sustainability
3
Automation
9
Governance Models 14
Corporate Social Responsibility 15
18
17
16
Commercialization, 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 Deliverables
We ask the next generation of supply chain talents to provide:
2011 IBM Corporation 11
Phase 2
Milestone
Early Nov
Begin Exploration





Culture
Value Effectiveness Structure
Technology
Context
Research Landscape
Explore Opportunities
Synthesize
2020 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 Oct
Complete Research
Mid Sep
Begin Research
Early Dec
Complete 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