Slide 1Slide 2Slide 3Slide 4Slide 5World GDP 1980-2030 (PPP)Consumer Spending Shifts Fueling the TrendsRise of RegionalismWhere to SourceIndustrial CommonsSC Provenance2014 US SC Trends to Watch*Slide 13Slide 14Slide 154. Transition from offshoring to near-shoring5. Increasing Importance of Environmental Sustainability6. Emergence of OmnichannelChapter 14 – Future TrendsShay Scott, Ph.D.Department of Marketing and SCMManaging Director, Global Supply Chain InstituteUniversity of [email protected] Chain ManagementSource: United Nations, Department of Economic and Social Affairs, Population Division: World Urbanization Prospects, the 2011 Revision. New York 2012198020112025>>>>>>>>>>>>>>>>>>>>198020112025>>>>>>>>>>>>>>>>>>>>Source: United Nations, Department of Economic and Social Affairs, Population Division: World Urbanization Prospects, the 2011 Revision. New York 2012198020112025>>>>>>>>>>>>>>>>>>>>Source: United Nations, Department of Economic and Social Affairs, Population Division: World Urbanization Prospects, the 2011 Revision. New York 2012World GDP 1980-2030 (PPP)Source: www.ghemawat.comConsumer Spending Shifts Fueling the TrendsConsumerShiftsSource: Euromonitor InternationalSource: The EconomistRise of Regionalism•Regions are developing that may or may not align with political boundaries.•Confluence of factors: geography, FTAs, natural resources, human capital, etc.•Enormous impact of critical regions•Economist Trade Parities ToolWhere to SourceThe risky single (factor) lifeLabor, taxes, tariffs, etc.Industrial CommonsIndustrial CommonsSource: Pisano & Shih, HBR 2007 & Producing Prosperity, 2012SC ProvenanceWhat you don’t know WILL hurt you!2014 US SC Trends to Watch*1. Continued shift toward demand-driven supply chains and internal integration of supply chain organizations2. Increased recognition of risk and simplification of supply chains3. Focus on SC segmentation & removal of unprofitable activities4. Transition from offshoring to near-shoring5. Increased importance of environmental sustainability6. Emergence of omnichannel strategies*Sources: UT GSCI Advisory Board, Gartner Group, and SCM World research1. Continued shift toward demand-driven supply chains and internal integration of supply chain organizations2. Increased recognition of supply chain risk and simplification of supply chains•Huge attention to risk mitigation plans–Tsunamis, Floods, and Strikes all in one year•SKU rationalization•Less complex sourcing•Product & SC Innovation (Coca-Cola Freestyle)•Segmentation of customers3. Focus on SC segmentation & removal of unprofitable activities4. Transition from offshoring to near-shoring•Risk mitigation, SC simplification, oil prices, the environment, and the equalization of China-Mexico wages are driving a surge in “near-shoring” in Mexico.Economist, Nov 24, 20125. Increasing Importance of Environmental Sustainability•Walmart Sustainability initiative has brought about significant change in US business view. Goals are:–To be supplied by 100% renewable energy–To create zero waste–To sell products that sustain people and the environment•Only 15% of US population still “true brown” according to 2012 Experian survey•Most business decisions now consider environment according to poll of UTK GSCI Advisory Board members6. Emergence of
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