Tipping points Supply Chain

Early adopter. The early adopter is on the leading, not the bleeding, edge of technology adoption. These companies wait for the first wave of adoption, learn the pitfalls and quickly follow. These companies will lag the projected supply chain tipping point by one year. 

Mainstream adopter. These companies find themselves in the middle of the pack. They learn from those that have gone before them and they cautiously find their way. These companies will lag the supply chain tipping point by three to five years. They invest only with a guaranteed return on investment (ROI). 

Late follower. The late follower is slow to adopt new technologies and concepts. Very conservative in approach, these companies will lag the supply chain tipping point by five to seven years. They will drive painstaking evaluation processes. They will be slow to make a decision. 

Figure 1.4 Major Tipping Points for Supply Chain Management Processes...

Connectivity was a strong enabler. With the growth of the Internet, friction was taken out of the supply chain. New processes evolved to better serve business-to-consumer (B2C) and business-to-business (B2B) relationships. In this period, millions of dollars were spent on B2B connectivity, enterprise resource planning (ERP), and e-commerce initiatives. Most were hastily implemented. These tipping points are shown in Figure 1.6. 

While only a soothsayer can predict the future, based on our interviews with the supply chain pioneers, we project seven plausible tipping points for the supply chain for the next decade (shown in Figure 6.8). 

To prepare for this tipping point, companies must list all of the critical devices and inputs in their supply chain. Business leaders have to postulate on how mobility and the Internet of Things can change the face and future of their supply chain, and then they can form a cross-functional team to work the most actionable use cases. 

While the tipping points for Supply Chain 2020 seem far off on the horizon, now is the tune to prepare. The supply chain of the future cannot be built overnight and there is substantial momentum in today s organization that must be overcome. To drive success, build momentum by following this nine-step process ... 

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