TECH BUYER Jul 2020 - Tech Buyer Presentation - Doc # AP46588120

Embedding Value Chain Redundancies Versus Upstream Visibility to Drive Resiliency in Asia/Pacific (Excluding Japan) Manufacturing

By: Sampath Kumar VenkataswamySenior Research Manager, Stephanie KrishnanAssociate Vice President

On-line Presentation


The debate between or lean manufacturing methodologies versus value chain redundancies has been there for quite some time. However, in terms of relevance, it has never been more important than now. Although it may seem a bit counterproductive at times, adding buffers or contingencies may actually increase the value chain's efficiency, but the associated costs over time can be also quite high. A long-term solution may lie with processes and technologies enabling supply chain visibility, which may be expensive in the short term but cost effective in the long run. Moreover, this is a business case that ensures embedded resilience in terms of shop-floor operations.

This IDC Tech Buyer Presentation focuses on upstream- and supply-related issues, and provides guidance on how organizations must build in elasticity in reacting to shocks, either through a combination of robust processes or technologies for improving visibility and transparency throughout the ecosystem. In addition, the solution quite literally lies with organizations' procurement, supplier relationship management, and supplier development teams and technologies, such as Internet of Things (IoT), big data and analytics (BDA), cloud, and artificial intelligence (AI) that enable data transparency in real time. Some other key takeaways in this document include:

  • Imbalance between demand and production capacity can result in several operational challenges impacting overall organizational resilience.
  • Depending on inventory stocking may be beneficial in the short term but may also significantly result in increased operational costs over time.
  • Ensuring and enabling supply chain visibility can significantly increase value chain efficiency while still mitigating demand fluctuations and market disruptions.
  • Seeing past the top-tier suppliers is extremely critical to sustaining shop-floor operations while also meeting customers' delivery guarantees.
  • This presentation also includes case studies and indicative timelines, allowing manufacturers to plan for resources and budgets to launch a similar supply chain visibility drive to increase operational resiliency.


  • 17 slides

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