Gartner Research

Industrial Industry Supply Chain Outlook 2016

Published: 27 June 2016

ID: G00303055

Analyst(s): Michael Burkett , Marko Pukkila

Summary

Stagnant global demand in 1H16 continues to pressure industrial manufacturers to cut costs, yet differentiate using value-added services to compete. Supply chain strategists can use this research to prioritize actions that can help win new business while remaining profitable.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Pressure for global expansion amid economic uncertainty is challenging industrial supply chain organizations to deliver regional or customer-specific product and service differentiation, while still achieving efficiencies of scale
  • Demand risk, along with complex and longer supply chains, are top threats over the next three years, reflecting the challenge of building and improving supplier relationships while expanding product and service offerings globally
    • Demand Uncertainty Leads to Waste Across an Extended Supply Chain
    • Different Supplier Relationships Ensure Innovation and Operational Excellence
  • Digital business growth is redefining customer relationships and service expectations, requiring industrial supply chain organizations to align and digitalize demand management and supply response processes, and support for product and service innovation.
    • Supply chain organizations can be left behind if not aligned with the digital business strategy

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