RESTON, Va.–(BUSINESS WIRE)–Software
AG (Frankfurt TecDAX: SOW) today released the company’s top ten
predictions for the next year in the manufacturing and supply chain
industry, calling 2015 the tipping point for supply chain sentience.
Next year innovative manufacturers will leap ahead by deploying more and
better sensors, add more comprehensive automation and increasingly
choose local fabrication.
Sean Riley, Global Manufacturing & Supply Chain Solutions Director,
Software AG noted: “In 2015, we will see manufacturers and their
partners accelerate the implementation of initiatives that will deliver
on the promise of the Internet of Things. For some companies, this will
be a challenge, but for many others it will be a year of great
opportunity leading to significant competitive advantage.”
1. The Internet of Things (IoT) will enable extreme industrial
innovation: Embedded sensors continuously streaming data combined
with continuous analysis will provide undiscovered levels of supply
chain visibility, production support and customer experience
optimization, as innovative manufacturers embrace the possibilities
enabled by IoT.
2. Increased adoption of automation will help manufacturers
create new revenue streams and lower costs: Increased servicing will
be required of specialized, automated equipment. Manufacturers of
specialized equipment will be uniquely positioned to create new revenue
streams by providing maintenance services on a predictive basis with the
use of sensors.
3. Real-time demand fulfillment will require tight integration
of supply chain, production, logistics and marketing: The ability to
sense demand in real-time and respond by changing prices or promotions
through the utilization of segmented logistics, inventory and
performance capacities, will allow for the optimization of integrated
responses.
4. Re-shoring will continue but supply chains will remain global,
large and complex: Re-shoring will remain a focus as manufacturers
search for efficiencies and innovation, but supply chains will still be
complicated, requiring increased visibility provided by the industrial
IoT.
5. Emerging markets will innovate and improve to compete with the
re-shoring trend: While labor and production in emerging markets
manufacturing has traditionally been appealing, improvements in
innovation and product quality will keep production facilities running
and entice new facilities to open, which will compete with re-shoring.
6. “The Project Economy” will thrive because of more exacting
customer requirements: Faster times to market with more specific
products and shorter lifecycles (PLM) will result in short-term shifting
and outsourcing of logistics facilities, production and suppliers.
Manufacturers will have to quickly onboard suppliers and partners to
support rapid product development and match the capabilities and
products desired by customers.
7. 3D printing will become central to manufacturing strategy:
Additive manufacturing will provide additional flexibility for service
parts or unique products with short life cycles. These capabilities will
flourish and will be adopted as a central part of a manufacturing
strategy.
8. Supply chain and operational resiliency will drive certainty in
the face of risk: Manufacturers will continue to focus on
maintaining cost and service certainty, even in the face of adverse
events and risks. Scenario and response planning will require processes
spanning multiple departments with the ability to understand forecasted
outcomes, and manage real-time deviations from planned outcomes.
9. Top supply chain and operations talent will continue to be highly
sought after and in short supply: Manufacturers who embrace “The
Digital Enterprise” concept will differentiate themselves and attract
the best, most sought after talent.
10. Government funding will spur collaboration and standards
creation, even among competitors: With the rise of IoT and the
ability to make massive amounts of data actionable through streaming
analytics and dynamic, structured collaboration, governments will
continue to increase funding for groups to create a new manufacturing
revolution.
“The ability to drive further cost savings and reduce time to market
depends on the manufacturer’s ability to trust in continuous, automated
monitoring of all systems,” added Riley. “The organizations that
successfully adopt and scale will bring new technologies mainstream
faster than people realize.”
About Software AG
Software AG (Frankfurt TecDAX: SOW) helps organizations achieve their
business objectives faster. The company’s big data, integration and
business process technologies enable customers to drive operational
efficiency, modernize their systems and optimize processes for smarter
decisions and better service. Building on over 40 years of
customer-centric innovation, the company is ranked as a “leader” in
fourteen market categories, fueled by core product families
Adabas-Natural, ARIS, Alfabet, Apama, Terracotta and webMethods.
Software AG has more than 4,600 employees in 70 countries and had
revenues of €973 million in 2013. Follow us on Twitter
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