MP Objects was the proud sponsor of the International Supply Chain Summit Istanbul (ISCSI) 2014 recently held in the metropolitan capital of Turkey. The international conference was held to present the transformation to 2020 in the world of supply chain management. Managers and professionals discussed the opportunities and challenges in global supply chains. Special interest was paid to bridging supply chain management across Europe and Asia and the pivot position of Turkey in connecting these continents.
Position of Turkey
The Turkish population of 80 million is equal to Germany and larger than France or the UK. Combined with its geographical position and economic vibrancy, Turkey is well positioned to play a prominent role in the global marketplace. Apart from being one of the emerging markets, Turkey is also a supply chain hub for Eastern Europe, the Middle East and Asia.Therefore the conference introduced awards for The Most Influential Supply Chain Professionals of Turkey who presented their outstanding achievements.
Internet of Things
One of the conference topics for 2020 was the growing importance of the Internet of Things (IOT) on supply chain transformation. Internet of Things, the network of Internet connected devices, is one of the forces recognized by research company Gartner to have a major impact on 2020 logistics. IOT will reach 26 billion installed units by 2020, up from 0.9 billion in 2009. The 30-fold increase is inevitably going to transform the way supply chains operate. It will also allow them to provide more efficient and more differentiated services to customers.
Other key trends for the next years will be digital design, digital printing and digital markets. Digital design and printing is expected to cause disruption to engineering and supply chain functions. Especially 3D printing will have a massive impact on future logistic operations. As we speak, the physical and digital world is rapidly converging into new revenue boosting digital market places. E-commerce is a threat for companies stuck in classic sales and distribution. At the same time, on-line business provides opportunities for fast growth.
Supply Chain Performance (SCP)
The upcoming forces for 2020 will require companies to bring their supply chain services to the next performance level. Brand owners, manufactures, wholesalers and retailers are challenged to satisfy new customer requirements and even exceed customer expectations to survive competition and win customers in open global market places. The parties in the supply chain need to coordinate their processes to provide services with high flexibility and low costs. As a consequence Logistics Service Providers (LSPs) will be pushed by brand owners to come with innovative solutions for end-to-end supply chain services.
Transport Management Systems (TMS)
In striving for success towards 2020, companies are required to use new supply chain technology emerging in this age of Internet. Many companies still rely on the ERP systems for management of their internal business processes. However, the ERP systems are not capable of managing the external supply chains. Some companies will implement a Warehouse Management System (WMS) for their distribution centres, which brings improvement but does not address external control. For the upcoming supply chain challenges it will be required to implement a Transport Management System (TMS), not just to control their own fleet, but in particular to manage the subcontracting to many carriers in international networks, preferably in the Software as a Service (SaaS) TMS model.
Supply Chain Orchestration (SCO)
The final breakthrough for 2020 will be the implementation of a system for Supply Chain Orchestration (SCO), which provides Supply Chain Visibility (SCV) for execution monitoring as well as features of an Advanced Planning System (APS) for dynamic order planning. There are few software vendors who offer a product capable of supporting SCO, SCV, APS and TMS. At the conference MP Objects showed how the MPO Supply Chain Suite supports Supply Chain Visibility and Transport Management in one rich, flexible, easy and cheap SaaS for Supply Chain Orchestration.
For more information on the ISCSI Conference 2014 please download the summary of the Keynote Presentations.