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Feb. 10, 2023
Supply Chain Digest Flagship Newsletter


This Week in SCDigest

bullet Supply Chain Predictions 2023 Part 3 bullet SCDigest On-Target e-Magazine
bullet Supply Chain Graphic & by the Numbers for the Week bullet New Stock Index

New Chain Cartoon Caption Contest!

bullet Trivia      bullet Feedback
bullet New Expert Column bullet On Demand Videocasts


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Updated Content for 2023!


Session 2 -Building the WMS Businss Case

Thursday Feb. 16, 2023

Expert Faculty: Dan Gilmore (Softeon) and Kevin Hume (ThruPut Partners)

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Future sessions include  Keys to WMS Vendor Selection, A Blueprint for WMS Implementation Success and more


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first thought


Supply Chain Graphic
of the Week


US Way Behind in Car Battery Materials and Production

This Week's Supply Chain Numbers

IMF Raises 2023 Global and US GDP Forecasts
Food Inflation Falling but Still High
GAP Entering 3PL Market with Ware2Go
Cool New SuperTruck2 from Daimler


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Expert Insight

The Importance of Pre-Shipment Inspections for Supply Chain Diversification



Pre-shipment Inspections can Mean the Difference Between Success and Failure in Today’s Competitive Global Market


Viktor Haggstrom
Marketing Content Specialist


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 This Week's SCDigest OnTarget Newsletter

Cartoon, Top SCDigest Stories of the Week

In what year was the ocean shipping container first used?
Answer Found at the
Bottom of the Page


Supply Chain Predictions 2023 Part 3

Two weeks ago, I summarized predictions on supply chain technology from Gartner. (See Supply Chain Predictions 2023.)

Last week, did the same for some other "predicts" from Gartner, including a set for manufactuing CIOs, and also for the retail sector.(See Supply Chain Predictions 2023 Part 2.)


This week, predictions from the supply chain analysts at IDC, who offered 10 of them for the coming year. Let's a look at three.



Often and quickly it becomes apparent that the problem is not in the specific tool but rather the ability for that tool to connect upstream and downstream to other tools.

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Let's begin with this one: By the end of 2023, 50% of supply chain organizations will have rebalanced resiliency efforts to reflect the realities of inflation and necessary efficiency to recover 2 percentage points of margin.

IDC starts by quoting a supply chain executive who observed that "investments in risk awareness and mitigation have been difficult to justify in the past" - but in today's world of disruption and demand and supply volatility, that has changed.

IDC notes that "Resiliency does not come for free, and efforts, for example, to diversify supply will likely mean less economies of scale for procurement." In fact, IDC says efforts to build residency may have gone too far at some companies.

This is very consistent with my own view of supply chain resilience.

"We are not suggesting that companies will, or should, abandon their efforts to improve supply chain resiliency," IDC says, "but we are suggesting that 2023 will be a year where they must reconcile resiliency with efficiency."

Among its recommendations in this area, IDC tells companies they should "integrate both existing and new supply chain systems so that all relevant data and insights can be combined for optimal supply chain balance."

To that I say a lot easier said than done, and it is an effort that will not be cheap. Bu the idea of a trade-off curve, if you will, between resilience and operating cost and investment is a good one, as it is so many areas of supply chain.

Next up for IDC is this one: By 2024, 30% of shippers will dynamically align logistics offerings with organizational strategy, achieving a 2 percentage point increase in OTIF (one-time, in-full) delivery across diverse transport channels

]I must admit I didn't understand what this means, but it intrigued me enough to dig a little deeper.

In a world of disruptions, blanked sailings (i.e., cancelled) by ocean container carriers, still COVID factory closures in China and more, "A less static global logistics network is materializing, and organizations must adapt with the intelligence and insights to effectively navigate these service offerings against their tolerance for risk, appetite for elevated costs, and disdain for transit variability," IDC says.

IDC adds that whether contracts for logistics services are managed directly by a shipper or through a 3PL/4PL, increased collaboration and visibility is required to effectively structure logistics support services around organizational strategy.

"Effectively structure logistics support services around organizational strategy" - not sure I understand what that means either.

IDC also predicts that ocean shippers "will benefit by moving toward mini-bids, reevaluating logistics contracts at shorter intervals (quarterly or even monthly) to ensure costs are tied to current market conditions and potential nodes of disruption/congestion are being avoided to ensure continuity of supply."

That sounds like something approaching a spot market strategy, with the associated risks and rewards.

It is also a little confusing if IDC is discussing ocean shipping only or other modes as well.

Regardless, IDC recommends that companies "establish and maintain data integrity to facilitate "buy-in" across supply chain partners," while sharing insights from "an established single source of truth to create a collaborative environment where supply chain partners operate from the same playbook."

Finally, let's take a look at this one: by 2026, 75% of supply chains will have invested in applications to better connect disparate supply chain planning and fulfillment systems, resulting in productivity gains of 3 percentage points.

IDC notes that its analysts "have recurring conversations with manufacturers and retailers, ostensibly to advise them on upgrades to existing systems - but that end up being about how better to connect and integrate disparate applications."

The initial client ask is for recommendations on a new WMS, demand planning system, and so forth. Yet, IDC say, it often and quickly it becomes apparent that the problem is not in the specific tool but rather the ability for that tool to connect upstream and downstream to other tools. In other words, they lack "connective tissue" in the supply chain.

An age-old problem I note, seemingly not getting much better after decades of trying, ERP, etc.

Still, numerous technology vendors claim new ways to solve this problem. Some, IDC says, claim to ensure inputs/outputs in any plan (supply, financial, inventory, distribution, manufacturing, demand, etc.) appropriately impact any related plan or operational capability. In this way, tools and processes are evolving to become like a neural network or "connective tissue" keeping the whole and its bespoke parts in closer to real-time alignment.

"In this way, tools and processes are evolving to become like a neural network or "connective tissue" keeping the whole and its bespoke parts in closer to real-time alignment," IDC says.

Do such solutions really exist? I am going to have to do some research, but I am dubious.

Regardless, among its recommendations, IDC notes that "Supply chain performance is only as good as the data that informs decisions," adding that "In a world of AI-driven automation, bad data will simply mean faster bad decisions, so make sure to focus on underlying data quality."

An interesting point, that last one.

As I wrap things up here, will note as you probably picked up, there are real style differences between Gartner and IDC's way of presenting this.

What is your reaction to these IDC prediction? What numbers would you add? Let us know your thought at the Feedback section below.


See as Web page/Printable Version

On Demand Videocast:

Understanding Distributed Order Management

Highlights from the New "Little Book of Distributed Order Management"

In this outstanding Videocast, we'll discuss DOM, based on the new Little Book of Distributed Order Management, written by our two Videocast presenters.

Featuring Dan Gilmore, Editor along with Satish Kumar, VP Client Services, Softeon

Now Available On Demand

On Demand Videocast:

The Grain Drain: Large-Scale Grain Port Terminal Optimization

The Constraints and Challenges of Planning and Implementing Port Operations

This videocast will provide a walkthrough of two ways to formulate a MIP, present an example port, and discuss port operations.

Featuring Dan Gilmore, Editor along with Dr. Evan Shellshear, Head of Analytics, Biarri.

Now Available On Demand

On Demand Videocast:

A Blueprint for WMS Implementation Success

If You Want a Successful WMS Project, You will Find the Blueprint in this Excellent Broadcast

This videocast lays out the keys to ensuring your WMS implementation goes smoothly, involves minimal pain, and accelerates time to value.

Featuring Dan Gilmore, Editor along with Todd Kovi of Radix Consulting and Dinesh Dongre of Softeon.

Now Available On Demand


Feedback will return next week.

In what year was the ocean shipping container first used?

A: 1956

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