hfs blueprint grid: supply chain management as-a-service

The Services Research Company

Charles SutherlandChief Research [email protected]

HfS Blueprint Report

Supply Chain Management As-a-ServiceExcerpt for Accenture

March 2016

Proprietary Page12016 HfSResearch Ltd. Excerpt for Accenture

TOPIC PAGE

ExecutiveSummary 2

SupplyChainManagementAs-a-Service 7

Research Methodology 23

KeyMarketDynamics 28

ServiceProviderGrid 32

ServiceProviderProfile 37

Market Wrap-UpandRecommendations 39

About theAuthor 44

Table of Contents

Executive Summary


Introduction to the HfS Blueprint Report: Supply Chain Management (SCM) As-a-Service

n SupplyChainManagementAs-a-ServiceHfSBlueprintReportisanewlookattheevolvingmarketforsupplychainmanagementservices.ThisBlueprintbuildsontheinitialSupplyChainManagementBPOHfSBlueprintof2014tolookingreaterdetailattheadoptionofthe8IdealsofAs-a-Servicedeliveryinthisfast-movingandcriticalbusinessfunction.

n TheHfSBlueprintnowincludesprofilesandassessmentsof14serviceprovidersofSupplyChainManagementAs-a-Service.Forthefirsttime,arvato,BrightstarandHCLareincluded.

n Unlikeotherquadrantsandmatrices,theHfSBlueprintidentifiesrelevantdifferentialsbetweenserviceprovidersacrossanumberoffacetsintwomaincategories:innovationandexecution.

n Forthis2016report,HfShasincreasedtheattentionpaidtoinnovationcriteriainparticularandadoptedthenew2016BlueprintGridlayouttoassessserviceproviders.ThisGridnowrecognizesup-and-comingserviceproviders(HighPotentials)thatarescoringhigheroninnovationcriteriathanonexecutioncriteriaastheprovidersbuildthesepractices.TheGridincludesanewgroupofestablished,high-executionserviceproviders(ExecutionPowerhouses)thathavebuilteffectivedeliveryoperationsbutneedtoinnovatecapabilitiesandofferingsfurther.Theyareinadditiontothepre-existingrankingsforhighestoverallperformance(WinnersCircle)andstrongcombinedinnovationandexecutionperformance(HighPerformers).


HfS Definition: The Supply Chain Services Value Chain

Mature Competitivemarketwithexamplesofserviceofferingsandcustomercasestudiesfromalargenumberofserviceproviders

Nascent Marketindevelopmentwithlimitedexamplesofserviceofferingsandcustomercasestudies

OrderManagement

InventoryManagement

ManufacturingManagement

TransportationManagement

AftermarketServices

MasterDataManagement

SustainabilityServices

OrderEntryInventory

StrategyandForecasting

ManagingMaterialsFlow

ShippingandFreightRequests

RMAManagement Creation

CarbonFootprint

Management

OrderMaintenance

InventoryReporting

LongTermCapacityPlanning

TransportationStrategy

ApprovingReturns Cleansing

GreenSupplyChain

Management

OrderReporting ReplenishmentOrderingCarrier

ManagementCustomerService Optimization

Forecasting SparePartsPlanning Operatinga4PLWarranty

Management Reporting

DemandPlanningandPromotion

Management

CFPRAcrossClients

TransportationPlanning

Control TowerServices

Order Analytics InventoryAnalyticsManufacturing

AnalyticsTransportation

AnalyticsAftermarketAnalytics

SustainabilityAnalytics


Key Highlights State of the SCM As-a-Service Marketn Fast Growing but Still Tiny Market. Our research indicates that Supply Chain Management (SCM)

was one of the strongest areas of BPO/As-a-Service market growth in 2014-2015. All of the serviceproviders in this Blueprint have been growing SCM much faster than their overall portfolio, and yetthe total market remains small at ~$1.8 billion ACV.

n A Heterogeneous and Slowly Evolving Offering. Most of the 14 service providers covered in thisBlueprint have a unique set of offerings and capabilities for addressing clients needs. Some focusspecifically on an industry, others focus on consulting-led delivery and client development whileothers lead with analytics or from a transactional approach built on order management oraftermarket services. Since our 2014 Blueprint, several service providers have added new valuechain component capabilities, but overall, the differences in offerings between the serviceproviders remain significant.

n As-a-Service Is the Model. As-a-Service has been part of SCM services since its inception. Inparticular, service providers have acted as Brokers of Capability partnering with enterpriseclients to identify operational issues and then bring the required insights and talent to improvebusiness outcomes. In the last several years, the availability of deeper analytical talent, digitalplatforms and design thinking approaches has moved this market even further through the As-a-Service model.

n IoT, Intelligent Automation and Design Thinking All on the Rise. For all the change thus far, SupplyChain Management As-a-Service will evolve even faster in the next few years. The deployment ofIoT, the widespread adoption of intelligent automation and the growing utilization of designthinking will lead to significant advances in this offering in thenear term.


Supply Chain Services Is an Under-Penetrated Market

$3TrillionSupplyChainCostBaseintheGlobal2000(e.g.,BFSI)

SCMBPOCanImpact10%of

SupplyChainCostBase

$300BillionPotentialSCMBPOMarket

CurrentSize~0.6%

Or$1.8Bn

~$55BillionPotentialSCMBPOMarket

CurrentSize~0.8%or$0.4Bn

InContrast:HR~11%F&A~8%Proc~3%

AftermarketSpecific

Up20%yoy!

Supply Chain Management As-a-Service

2016 HfSResearch Ltd. Excerpt for Accenture

TOOLS/INFRASTRUCTURE GOVERNANCE

Welcome to the As-a-Service EconomyHfSusesthewordeconomytoemphasizethattheemergingnextphaseofoutsourcingisamoreflexible,outcomefocusedwayofengagingandmanagingresourcestodeliverservices.OperatingintheAs-a-ServiceEconomymeansarchitectinguseofincreasinglymatureoperatingmodels,enablingtechnologiesandtalenttodrivetargetedbusinessoutcomes.Thefocusisonvaluetotheconsumer.

I.THEOPTIMUMOPERATINGMODEL

Outsourcing|SharedServicesGBS|BPaaS/SaaS/IaaS|Crowdsourcing

II.EMPOWERINGTALENTTOMAKEITALL

POSSIBLECapabilitiesoverSkills|

DefiningOutcomes|Creativity|DataScience

IV.TECHNOLOGYTOAUGMENTKNOWLEDGELABOR

Digitization&RoboticAutomation|Analytics|Mobility|SocialMedia|CognitiveComputing

III.ABURNINGPLATFORMFORCHANGE

GlobalizationofLabor|High-growthEmergingMarkets|

DisruptiveBusinessModels|Consumerization

AS-A-SERVICEECONOMY

Agility|CollaborationOne-to-Many|OutcomeFocus

Plug-and-PlayServices

2016 HfSResearch Ltd. Excerpt for Accenture

FixedAssetsLeveragedAssets

2DesignThinking

3BrokersofCapability

1WriteOffLegacy

4CollaborativeEngagement

7HolisticSecurity

5IntelligentAutomation 6

Accessibleand

ActionableData

8PlugandPlay

DigitalServices

SOLUTIONIdeals

LEGACYECONOMY

AS-A-SERVICEECONOMYCHANGEMGMT

Ideals

MovingintotheAs-a-ServiceEconomymeanschangingthenatureandfocusofengagementbetweenenterprisebuyers,serviceprovidersandadvisors

As-a-Serviceunleashespeopletalenttodrivenewvaluethroughsmartertechnologyandautomation

Journey to the As-a-Service Economy


How As-a-Service Is Taking Shape in SCM: Writing Off Legacy

Legacytechnologyandphysicaldistributioninvestments thatlimitagilityandcreate exceptionsaddressedthrough

addinginternalandexternalFTEs

Usingplatform-basedsolutions,DevOpsandAPIecosystemsformoreagile,fewerexception-orientedsystems

Writing Off Legacy for enterprises and service providers in Supply Chain Management As-a-Service is still largely inthe Initial phase. Solutions generally include incremental technology or capabilities (e.g., control tower)designed to work around or integrate with existing physical and technological investments. Most enterprises areheavily invested in their ERP or specific SCM platforms (having typically rolled them out in the last 5-15 years) anddont yet see a viable alternative around which to build for the future.

Examples: Accenture is working to develop and implement platforms that sit around and on top of a clients legacy supply

chain system of record. The Accenture platform pulls data in real time, runs the analysis and then identifiesactions for the service provider teams to execute. Then, over time, the legacy platform becomes a data repositorythat can be written off in the future as the data and execution environment moves into the cloud.

OnProcess offers a similar model of engagement in which managed services are delivered by OnProcesstechnologies that increasingly make the clients legacy systems of record redundant. Clients are still maintainingthose systems of record for the moment but are relying on OnProcess to use the platforms to manage workflow,delivery services, provide visibility into operations and outcomesand be the analytics platform for the processes.


How As-a-Service Is Taking Shape in SCM: Design Thinking

Resolvingproblemsbylookingfirstattheprocessasthesourceofthesolution

Understandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds

Enterprise supply chains are continually changing as a result of new product and service releases, sourcing andmanufacturing decisions and shifts in customer demand and expectations. Effective enterprises and serviceproviders are using Design Thinking approaches (they do not always call thesemethodologies design thinking) toreimagine supply chain processes and systems so that they effectively respond to business challenges. Designthinking is actually quite Expansive in its penetration of Supply Chain Management As-a-Service even if thatisnt formally recognized today.

Examples: Infosys has put design thinking at the heart of the companys strategy for developing solutions and managing

client relationships. HfS is starting to see evidence of design thinking approaches being brought to new supplychain management clients and longstanding clients where process solutions need a revamp.

Wipro provides an example of a service provider that has been utilizing design thinking methodologies withoutcalling them that to look at business issues for order management clients. The consultative nature of manysupply chain management engagements has meant that many service providers start client dialogues byunderstanding the underlying business context in a way that was not as prevalent in F&A or other back-officeprocess areas in recent years.


How As-a-Service Is Taking Shape in SCM: Brokers of Capability

Focusinggovernanceandoperationsstaffonmanagingtotheletterofthecontractandthedecimalpointsofservice levels

Orientinggovernancetosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps

Brokers of capability are the professionals in supply chain management who can look outside the process forcurrent and anticipated needs to deliver business results, and manages to those outcomes that may or may notbe included as KPIs specific to the engagement. This ability can be especially useful in supporting supply chainmanagement processes where there are complex ecosystems and the needs of any given enterprise are not wellunderstood at a particular time and may be highly volatile as well. We see them as an Extensively availableIdeal in todays market.

Examples: HAVI GS provides clients with a wide breadth of expertise in support of the daily operations of the client

business. These capabilities are captured in detailed solution roadmaps that align with client requirements andidentified business outcomes over time. With a deep understanding of the Quick Service Restaurant industryand what it takes to scale operations, HAVI GS anticipates the future capabilities needs of growing clients andshares practices fromclients that have been there before.

Brightstar also builds on a very broad and pervasive presence in thewireless industry to create solution sets thataddress the evolving capability needs of various client segments (Tier I/II/III operators, virtual start-ups, retailersand more). Having the pulse of the industry and its evolution allows Brightstar to respond in an agile manner toclients capability requirements beforethey mayeven have been formally identified.


How As-a-Service Is Taking Shape in SCM: Collaborative Engagement

The key to a sustainable outsourcing engagement is collaboration, working together to produce a result.Traditionally, business process outsourcing work has been directive from service buyers to service providers andmanaged strictly by procurement organizations. As more business units and global shared services centers takeresponsibility for relationships, HfS is seeing a move over time to more collaboration where trust and experienceare in place, often through shared outcomes and results. The adoption of practices of collaborative engagementis Extensive in SCM today as a response to the orientation of the market toward solving challenging businessissues and is not a simple cost or efficiency play.

Examples: TCS employs a three-level model of collaborative engagement with strategic discussions at the senior

management level, tactical collaboration between operational managers (supported by a Customer EngagementPortal) and operational reviews at the day-to-day level.

Collaborative engagement occurs not just in the course of daily operations and quarterly business reviews butalso by the provisioning of customer-service provider events throughout the year in a way that creates anongoing dialogue between all parties. Arvato is very active in this regard hosting multiple events every yearranging from focused customer workshops to end customer panels and focus groups, client days and masterclasses, all of which are intended to encourage development and sharing of expertise.

Evaluatingrelationshipsonbaselinesofcost,effortandlabor

Ensuringrelationshipsarecontractedtodrivesustainedexpertiseandoutcomes


How As-a-Service Is Taking Shape in SCM: Intelligent Automation

Operatingfragmentedprocessesacrossmultipletechnologieswithsignificant

manualinterventions

Usingofautomationandcognitivecomputingtoblendanalytics,talentandtechnology

Intelligent Automationsoftware used to do rules-defined tasksis very prevalent in the physical elements ofsupply chain management today (e.g., robotic pickers, automated conveyor belts). However, what HfS termsIntelligent Automation extending software automation across processes and bringing in natural languageprocessing and machine learning has only an Initial foothold in business process operations support for supplychain management. There are real opportunities, especially in order management, aftermarket services andmaster data management, to use technologies such as robotic process automation (RPA) to improve quality andreduce time to throughput leading to a reduction in the headcount invested in routine tasks.

Examples: Genpact uses a Supply Chain System of Engagement (SoE) approach to put RPA into the heart of operations,

bringing together siloed applications with a workflow system, a rules engine and a user interface. This approachto support rapid automation in supply chain processes enables the service provider to focus morewhere humantalent is deployed and reduce the risks of transactional errors.

HCL uses its Toscana RPA suite to automate previously manually performed tasks such as data digitization anddata entry across supply chain processes. By focusing on automating key processes and sub-processes (and notall supply chain processes are suitable for RPA), HCL builds a supply chain practice at speed and concentrates onrecruiting only the talent types that are in high demand by clients today and for tomorrow.


How As-a-Service Is Taking Shape in SCM: Accessible and Actionable Data

Performingad-hocanalysisonunstructureddatawithlittleintegrationor

businesscontext

Applyinganalyticstechnologies,processesandresourcestorelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise

Taking advantage of Accessible and Actionable Data is at the very heart of Supply Chain Management As-a-Service operations. Although there are substantial transactional processes within SCM, the heart of the valueproposition for most service providers comes from aggregating data across a process and then deriving insightsthat either the service provider and/or the enterprise can act upon to improve the business. This Ideal isExtensive in its application within the current Supply Chain Management As-a-Servicemarket.

Examples: Service providers such as EXL employ a two-pronged strategy for making data accessible and actionable for

clients. The first prong is to embed analytical team members in all supply chain engagements whose role is tocapture relevant data and then to make it effective for clients. The second prong is to identify services built onpreviously inaccessible or un-actionable data in the supply chain and then make that data available in focusedservice offerings, suchas fuel optimization, lane optimization and more.

WNS employs a similar model and uses analytical dashboards similar to other service providers to highlight thekey data sets that drivemeaningful insights that either the service provider or the client can take action to driveimmediate business outcomes.


Analytics in Supply Chain Management As-a-Service

OrderAnalytics

Forecasting&DemandPlanning

PromotionalAnalytics

OrderFillAnalytics

CosttoServeAnalytics

ServiceLevelOptimization

RevenueLeakageorFraudAnalytics

AllcomponentsoftheSCMvaluechain haveananalytics capability orsub-process. MasterDataManagementis anenabler foranalytics inSupplyChainManagementAs-a-Service.

InventoryAnalytics

InventoryCostOptimization

SafetyStockRecommendation

SKULevelInventoryOptimization

InventoryDeploymentOptimization

WorkingCapitalAnalytics

Write-OffModeling

Aged&SlowMovingAnalytics

ManufacturingAnalytics

CapacityOptimization

ProductionPlanning&Scheduling

LineLoading&LineBalancing

AssetOptimization&Disposition

PredictiveMaintenanceAnalytics

MaterialPlanning CosttoManufactureAnalytics

TransportationAnalytics

ShipmentSchedulingOptimization

RouteOptimization

FreightCostOptimization

WarehouseAnalytics

FleetModelling FreightMeasurementAnalytics

PredictiveFleetMaintenanceAnalytics

DistributionAnalytics

AftermarketAnalytics

PredictivePartsForecasting

StockingStrategy WarrantyAnalytics

CustomerSatisfactionAnalytics

ForwardLocation ServicesPlanning ReliabilityAnalytics&PartFailureRateModeling

ReturnLogisticAnalysis

FieldForceAnalytics


EnergyOptimization&Analytics

CarbonFootprintAnalytics

GreenHouseGas(GHG)EmissionAnalytics

GreenRouting LifecycleWaterUsageAnalytics

Regulatory&EnvironmentalComplianceAnalytics

OrderManagement

InventoryManagement



AftermarketServices




How As-a-Service Is Taking Shape in SCM: Holistic Security

Respondingreactivelywithpost-eventfixes.Little focusonend-to-endprocess

valuechains

Proactivelymanagingdigitaldataacrossservicechainofpeople,systemsandprocesses

Holistic Security is the most over-looked or ignored As-a-Service Ideal today in supply chain management. Inmany cases, just building a view of an end-to-end supply chain has proven (or is proving) to be a challengingundertaking. Thus, stepping back to think about how to surround that supply chain and the processes withholistic data security is largely nonexistent from HfSs perspective. That does not mean there is no data securityin Supply Chain Management As-a-Service; instead, the approach is siloed and sub-optimal, and there is much tobe done toput in place a security environment forsupply chain data and insights that works forall participants.

Example: Perhaps because of arvatos greater exposure to the fulfillment management elements of Supply Chain

Management As-a-Service, HfS saw from arvato more of an awareness of what the opportunities and issues arefor holistic and physical security management than from other service providers. With a view to the needs ofmanaging physical and data security for supply chain processes, arvato is showing how significant thesecapabilities will be and how it should increasingly form a central part in a Supply Chain Management As-a-Service offering vision.


How As-a-Service Is Taking Shape in SCM: Plug and Play Digital Business Services

Undertakingcomplexandoftenpainfultechnologytransitionstoreachasteady

state

Pluggingintoreadytogobusinessoutcomefocused,people,processandtechnologywithsecuritymeasures

Supply Chain Management service providers are just beginning to become partners with their clients indeveloping and deploying Plug and Play Digital Business Services. Typically, they have taken the form of controltowers or analytical applications. We see these services as being at the Initial stage of development withsignificant progress forecasted over the next few years as service providers become more comfortable withbeing platformdevelopers.

Example: Capgemini has used the Supply Chain As a Stack solution approach including control tower services and

partnered ERP platforms to offer end-to-end services for clients who wish to plug into this stack and avoid theirown additional capital or operational expenditures. This model can be used to address client concerns regardingTCO and ensure access to leading application sets that are refreshed on an ongoing basis.

Entercoms control tower services are designed to run plug and play on the cloud with little disruption to back-end IT systems. This approach of avoiding hard-wired solutions deploys applications rapidly and speeds upoutcomes.

2016 HfSResearch Ltd. Excerpt for Accenture Proprietary Page19

HfS Believes that Control Towers Are Integral to the Effective Delivery of Supply Chain Management As-a-Service

OrdersPOtoShipment

LogisticsandTransportation

AftermarketServices

ControltowersinSCMBPOcanprovidevisibilityintoorders,manufacturing,inventory,logisticsandaftermarketservicesandarecriticaltotheabilityofenterprisesandserviceproviderstodeliverSupplyChainManagementAs-a-Service.

DifferentSCMvaluechainfunctionsmayhavetheirowncontroltowers.

SCMserviceprovidersarestillbuildingtheircapabilitiesinthisarea,andseveralserviceprovidersrelyonthirdpartiesforthiscapabilityiftheyofferitatall.

Inventory


However, Control Towers are Often Limited in Functionality Today, Thus Better Described as Visibility Towers

ModelFramework forControl Tower

CloudPlatformwith3Levels:

Level1:Providesend-to-endvisibility acrossextendedsupplychain Level2:Enablesanalyticsofdatacollected acrossextendedsupplychainwiththepossibilitytosuggestpost-eventactions

Level3:Coordinatesexecution,automation,continuousimprovementandprocessorchestrationofsupplychainprocesses

MostActivityToday


Issues for Supply Chain Management As-a-Service Providers Todayn Supply Chain Management Executive Relationships: In 2016, service providers still may not have as developed a

relationship with supply chain executives in the enterprise as they may havewith the leaders of other functions. Asa result, supply chain management offerings may not be top of mind for the sales and account teams that arewalking the client halls each week. This creates an onus on the marketing and offering teams inside the serviceproviders to get their message out internally so that the sales teams understand what is available to address theclients business issues.

n Sole Sourcing: Many of the SCM opportunities today are sole sourced. They often grow out of consulting or SIengagements with the client that open up additional discussions of capabilities and scope. Although there aresome RFPs in the market, growing this offering at scale requires having a sales and account management capabilitythat knows what signals to listen for and how to bring the right team and response to a client that may have urgentand very specific issues in the supply chain.

n Providers and Enterprise Buyers View Offerings with a Different Starting Point: One phenomenon we saw in 2014and that continues today in SCM is that service providers often see this as a high-end offering because of the useof SMEs, transformation, analytics and platforms, but buyers often see the same solution as fitting into the lowerend of their SCM process needs. As a result, service providers need to recognize that the view from the client sidemay be different but equally valid as their own way of thinking and not to get too carried away by how leading-edgethese processes maybe.

n Channel Confusion: One issue for service providers with deep SCM consulting units is that many clientrequirements could be addressable with either BPO-based or consulting-based solutions within the boundaries ofwhat could be defined as As-a-Service. This creates channel confusion (and sometimes client confusion as well) inthe sales and solutioning process and is one of the key reasons why those service providers need to invest in strongoffering skills so that the boundaries of different possible client solutions can be shaped and well communicated toall within this broader umbrella of Supply Chain Management As-a-Service.


More Issues for Service Providers Today

n Consolidating Order Management Capabilities: In some service providers, order management capabilities andcontracts may be found not only in supply chain but also in F&A or in industry vertical specific offerings. This doesntmean that those service providers are less capable than others, but it might mean that potential cross-clientsynergies are harder to find. It may also be true that the service provider doesnt realize the extent to which theyhave a broader order management capability (and client references) which may tell a story to the market of scaleddelivery.

n Partnership Identification andManagement:No Supply Chain Management As-a-Service providers can solve for allthe pain points of an end-to-end client supply chain in-house. In todays market, partnerships, whether fortechnology, 3PL/4PL services, inventory ownership, warehousing management or other, are an integral part ofvalue-creating solutions. SCM service providers need to invest in market intelligence to understand the potentialnew partners that are emerging (especially in digital platforms) and then have an effective program for managingthat potential relationship over time.

n The Service Provider Landscape Is Evolving: In our 2014 Blueprint, we covered 13 service providers in depth. For2016, we added three (arvato, Brightstar and HCL), but Celestica stepped back from themarket, and Tech Mahindradid not participate. This competitive landscape will continue to evolve in the years to come, and the traditionalcompetitors will not alwaysbe the challengers foreach client.

Research Methodology


Blueprint Research MethodologyDataSummaryn DatawascollectedinQ42015andQ12016,covering

buyers,providersandadvisors/influencers ofSupplyChainManagementServices.

n Morethan980datapointswerecollected,covering14majorserviceproviders.

ParticipatingServiceProviders

ThisReportIsBasedOn:

n TalesfromtheTrenches:Interviewswereconductedwithbuyerswhohaveevaluatedserviceprovidersandexperiencedtheservices.Someweresupplied byserviceproviders,butmanyinterviewswereconductedbyHfSExecutiveCouncilmembersandparticipantsinourextensivemarketresearch.

n Sell-SideExecutiveBriefings:Structureddiscussions withserviceproviderswereintendedtocollectdatanecessarytoevaluateinnovation,executionandmarketshare,anddealcounts.

n PubliclyAvailableInformation:Financialdata,websiteinformation,presentationsgivenbyseniorexecutivesandothermarketingcollateralwereevaluated.


EXECUTION 100%Quality OfServiceProvidersAccountManagementTeam 12%IncorporatingCustomerFeedbackandCollaborativelyEngage 10%WorkingWithClientsToWriteOffLegacy 12%DeliveringActualServices 28%Geographic FootprintAndScale 8%Flexibility ToDeliverEnd-to-EndAndPointSolutions 10%Becoming BrokersOfCapabilityForClients 12%Experience InDelivering Industry-SpecificSolutions 8%

INNOVATION 100%

Vision AndCommittedInvestmentsForTheEvolutionOfSupplyChainManagementServices 25%ApproachToIncreasingValueForClientsOverThe ContractLifecycle 10%ApplicationAndPlatformStrategy ForSupplyChainManagementServices 11%Solutions ForAccessibleAndActionableDataInSupplyChainManagementServices 15%ModelForTheApplicationOfIntelligentAutomationInSupplyChain Management 14%AvailabilityOfPlugAndPlayServices(e.g.,ControlTower) 15%IntegrationOfSupplyChainConsulting,BPOAndTechnologyCapabilities 10%

HfS Blueprint Scoring Percentage Breakdown


Execution DefinitionsEXECUTION Howwelldoestheserviceproviderexecuteonitscontractualagreement,andhowwelldoestheprovidermanagetheclient/providerrelationship?

QualityOfServiceProvidersAccountManagementTeam

Howengagedis theexecutiveandmanagementteamindefiningandmanagingthedeliveryofbusinessservices?

IncorporatingCustomerFeedbackAndCollaborativelyEngage

Howhas theserviceprovidertakenfeedbackandincorporateditintothesolutionanddelivery?Howwastheserviceprovidermaintainedacollaborativeengagement?

WorkingWithClients toWriteOffLegacyHow doestheserviceproviderworkwithclientstoimplementsolutionsthateitherreplaceorallowfortheoperationalandfinancialreplacementoflegacyassets,processesandculture/organizationaldesign?

DeliveringActualServices Whatarethe clientsandmarketsoverallimpressionofthequalityofserviceacrossthevaluechainfromthisserviceprovider?

GeographicFootprintAndScale Howdoesthisserviceprovideruseaglobaldeliveryfootprinttomeetclientsneeds?

Flexibility ToDeliverEnd-to-EndAndPointSolutions

Whenlookingata clientsSCM issues,cantheserviceprovideroffervarioussolutions(pointandendtoend)tocreateaflexibleandconfigurable(orcustomized)response?

BecomingBrokersOfCapabilityForClients Istheserviceproviderabletoact asadeeppartnerinmeetingclientsspecificandvariedtalentandtechnologyrequirementsovertime?

Experience InDeliveringIndustry-SpecificSolutions

Howdeep isthedomainexpertise(talentandsolutions)inunderstandingandthenaddressingindustry-specificissues?Isthisdomainexpertiselimitedtoasingleindustryvertical,orisitwidespread?Istheserviceproviderorganizedaroundindustry-specificknowledgedevelopmentanddelivery?


Innovation Definitions

INNOVATION Howwelldoestheserviceproviderinnovateitsoffering(s)inresponsetomarketdemand,clientrequirements anditsownvisionforhowtheSCMmarketwillevolve?

VisionAndCommittedInvestmentsForTheEvolutionOfSupply ChainManagementServices

Whatistheserviceprovider svision fortheevolutionofsupplychainmanagementservices?IsthereaclearstrategyfordeliveringSupplyChainManagementAs-a-Service,andarethereidentifiableinvestmentsinplacetorealizethisstrategytoday?

ApproachToIncreasingValue ForClientsOverTheContractLifecycle

Howdoestheserviceproviderviewaclientscontract?Isthereanactiveeffortonthepartoftheserviceprovidertocreatevalueyearonyearbeyondthecontractcommitments?

Application AndPlatformStrategyForSupplyChainManagementServices

Whatistheroleof applicationsandplatformsintheserviceprovider sofferingstrategy?Aretheselectedplatformsdevelopedin-house,oraretheyprovidedbythirdparties?Isthereademonstrableintenttomaintainandenhancethein-houseplatforms?

SolutionsForAccessibleAndActionableDataInSupplyChainManagementServices

How doestheserviceproviderworkwithclientstodevelopacomprehensivesetofsupplychaindataandtheninturnmaketheanalysisofthatdataandthedevelopmentofinsightspossible?Istheserviceprovideranactiveparticipantinthedevelopmentofinsightsorapassivedataprovider?Istheserviceproviderallowedbyclientstoactuponthedevelopeddatatoimprovetheeffectivenessofoverallsupplychain?

ModelForTheApplicationOfIntelligentAutomationInSupplyChainManagement

Whatistheservice provider s approachtousingintelligentautomation platforms(RPA,autonomicsandcognitive)toimprovetheefficiencyandeffectivenessofdeliveringthesupplychainprocess?Howmatureistheserviceprovider sstrategyforintelligentautomation?

AvailabilityOf DigitalPlugAndPlayServices

WhatdigitalplatformsdoestheserviceproviderusetodeliverSupplyChainManagementAs-a-Service?Aretheyintegraltotheserviceprovider soffering(s)oradd-ons?Howpervasiveistheuptakeofthesedigitalplatformsbyclientstoday?Whatistheserviceprovider sfuturedigitalplatformstrategy?

IntegrationOfSupplyChainConsulting,BPOAndTechnologyCapabilities

Howdoestheserviceprovidercombinecapabilities insupplychainconsulting,BPOoroperationaldeliveryandsupportingtechnologyintheformtocreateinnovativeSupplyChainManagementAs-a-Serviceofferings?

Key Market Dynamics


Enterprise Pain Points Addressed by SCM As-a-Service

EnterpriseSupplyChainPainPoint

Reason(s) forPainPoint Business Impact

ProductionandInventoryWrite-offs

Lackof visibility Ineffectiveplanningandforecastingmodels Inabilitytoconvertinsightintoaction

Top- andbottom-linelosses Inventorysell-offsrequired

Lagging Benchmarks Inefficientprocesses Lack ofdataandvisibility

Excessivecostofgoods Delaysinorder managementand

delivery

Transportation Chaos Inefficientprocesses Lackofoverallvisibilityintonetworkand

opportunitiesforoptimization

Excessivetransportationcosts Delaysinorder managementand

delivery

LackofStandardization Uniqueprocessesby unitorgeography Unnecessaryoverhead Inconsistent customerexperience

UnderperformingCSATandNPSScores

Lackofstock andpoorinventoryplanning Slowsupplychainprocesses Ineffective aftermarketprocesses

Top- andbottom-linelosses Negativeonlinereviewsorwordof

mouth Customerchurnincreases

RevenueLeakage Ineffectiveordermanagementprocesses Faultydatasetsthatdontdetecterrors Undetectedfraud,waste andabuse

Top- andbottom-linelosses


Supply Chain Management Is Beginning to Incorporate the Ideals of the As-a-Service Economy

IDEAL AS-A-SERVICEIDEALDEFINITION

NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALLPERVASIVE

WriteOffLegacyUsingplatform-basedsolutions,DevOpsandAPIecosystemsformoreagile,fewerexception-orientedsystems 2016

DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds 2016

Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps 2016

CollaborativeEngagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes 2016

IntelligentAutomation

Using automationandcognitivecomputingtoblendanalytics,talentandtechnology 2016

AccessibleandActionableData

Applyinganalyticstechnologies,processesandresourcesonrelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise 2016

HolisticSecurityProactivelymanagingdigitaldataacrossservicechainofpeople,systemsandprocesses 2016

Plug andPlayDigitalBusinessServices

Pluggingintoreadytogobusiness outcomefocused, people,processandtechnologysolutionswithsecuritymeasures 2016


The Supply Chain Services Value Chain

Mature Competitivemarketwithexamplesofserviceofferingsandcustomercasestudiesfromalargenumberofserviceproviders

Nascent Marketindevelopmentwithlimitedexamplesofserviceofferingsandcustomercasestudies

OrderManagement

InventoryManagement



AftermarketServices



OrderEntryInventory

StrategyandForecasting

ManagingMaterialsFlow

ShippingandFreightRequests

RMAManagement Creation

CarbonFootprint

Management

OrderMaintenance

InventoryReporting

Long-termCapacityPlanning

TransportationStrategy

ApprovingReturns Cleansing

GreenSupplyChain

Management

OrderReporting ReplenishmentOrderingCarrier

ManagementCustomerService Optimization

Forecasting SparePartsPlanning Operatinga4PLWarranty

Management Reporting

DemandPlanningandPromotion

Management

CFPRAcrossClients

TransportationPlanning

Control TowerServices

Order Analytics InventoryAnalyticsManufacturing

AnalyticsTransportation

AnalyticsAftermarketAnalytics



The Current Maturity of Service Provider SCM As-a-Service Offerings

OrderManagement

InventoryManagement



AftermarketServices



Accenture

arvato

Brightstar

Capgemini

Entercoms

EXL

Genpact

HAVIGS

HCL

Infosys

OnProcess

TCS

Wipro

WNS

LessMatureServices

MoreMatureServices

MinimalKeytoServicesMaturityontheServiceProviderProfilePages

Service Provider Grid


TodistinguishserviceprovidersthatshowcompetitivedifferentiationinaparticularlineofdeliverywithprogressinrealizingtheAs-a-ServiceEconomyofbusinessoutcome-oriented,on-demand,talent+technologyservices,HfSawardstheseproviderstheAs-a-ServiceWinnersCircledesignation.

Guide to the Blueprint Grid

EXECUTION INNOVATION

As-a-ServiceWinners Circleshowexcellence recognizedbyclientsinthe8Idealsin executionandinnovation

Collaborative relationshipswithclients,servicesexecutedwithacombinationoftalentandtechnology asappropriate,andflexiblearrangements.

Articulatevisionandanewwayofthinking,haverecognizableinvestments infuturecapabilities and strongclientfeedbackand aredrivingnewinsights andmodels.

HighPerformersdemonstratestrongcapabilitiesyetlackaninnovativevisionormomentuminexecutingthevision

Executesomeofthe followingareaswithexcellence:worthwhilerelationshipswithclients,servicesexecutedwithgreenlightsandflexibilitywhenmeetingclientsneeds.

Typically, describeavisionandplanstoinvestinfuturecapabilitiesandpartnerships forAs-a-Service,andillustratean abilitytoleveragedigitaltechnologiesand/ordevelop newinsightswithclients.

High Potentialsdemonstratevisionandstrategybuthaveyettogainmomentuminexecuting them

Earlyresultsandproof points fromexamplesinnewserviceareasorinnovativeservicemodels,yetlackscale,broad impactandmomentuminthecapabilityunder review.

Well-plotted strategyandthoughtleadership,showcaseduseofnewertechnologiesand/orroadmapandtalentdevelopmentplans.

ExecutionPowerhousesdemonstratesolid,reliableexecution,buthaveyet toshowsignificantinnovation orvision

Evidence ofoperationalexcellence;however, stillmoreofadirectiveengagementbetweenserviceprovider anditsclients.

Lack ofevidentvisionandinvestmentinfuture-oriented capability,suchasskillsdevelopment, intelligentoperationsordigitaltechnologies.


INNOVA

TION

EXECUTION

ExcellentatInnovationandExecutionInvestinginInnovationtoChange

BuildingAllCapabilities ExecutionIsAheadofInnovation

AS-A-SERVICEWINNERSCIRCLE

EXECUTIONPOWERHOUSES

HIGHPOTENTIALS

HIGHPERFORMERS

HfS Blueprint Grid: Supply Chain Management As-A-Service

Wipro

Genpact

AccentureHAVIGS

InfosysTCSWNS

CapgeminiHCL

Entercoms

Brightstar

OnProcessarvato

EXL


Major Service Provider Dynamics: Highlights

EXECUTION

ActualDeliveryofServices:Poorlydeliveredsupplychainprocessescandramaticallyimpacttheenterprisestop- andbottom-lineperformance.ThevalueplacedonexcellentservicedeliverywasevengreaterforthisBlueprintthanin2014.FeedbackondeliveryexcellencehasimprovedacrosstheboardbutwasespeciallypositivefortheserviceprovidersintheAs-a-ServiceWinnersCircle.

BrokersofCapability:Enterpriseclientsarebecomingmuchmoredemandinginthetypeofrolesandskillstheywanttoacquirefromserviceprovidersinsupplychainprocesses.Thedaysoflargetransactionalteamsourcingarewaningandarebeingreplacedbyagileskillsourcing.Serviceproviders,includingarvato,InfosysandTCS,areadaptingtothisnewdynamicbydiversifyingtheirskillsofferingandbuildingmoreflexiblecommercialstructurestoprovideaccesstotalenttoleadingclients.

Industry-SpecificCapabilities:Thevalueofdeepindustrydomainexpertiseinsupplychainmanagementiscomingthroughfrominterviewswithclientsandmarketshapers.arvato,BrightstarandHAVIGSleadthewayhere,butEntercoms,OnProcessandothersaresteppingupindustryinvestments,andEXLandWNSarefocusingonlogisticsandtransportationclientneeds.

INNOVATION

CreatingaVisionforSupplyChainManagementAs-a-Service:As-a-Servicehasalwaysbeenapartofthesupplychainmanagementmarket,buttheinvestmentinassetsandchangesincommercialmodelstosupportthissincethelastBlueprinthasbeenpronounced.Accenture,Genpact,HAVIGSandOnProcessstandoutinparticularfortheeffortsthathavebeenmadehereinthelasttwoyears.

IntroducingIntelligentAutomationintoSupplyChain:RPAandcognitivearestillrelativelynewinsupplychainprocesses,butHfSexpectsthemtobecomemuchmoremainstreamcapabilitiesinthenextfewyears.ForthisBlueprint,theeffortsofseveralserviceprovidersstoodoutinparticular,includingCapgemini,Genpact,HCL,Infosys,TCSandWipro.

EnhancingControlTowerSolutions:Controltowersolutionswereoneofthekeydifferentiatorsbetweenserviceprovidersinour2014Blueprint.ThisplatformhasbecomeevenmoresophisticatedoverthelasttwoyearsandisintegraltothestrategiesandofferingsofserviceproviderssuchasAccenture,arvato,Capgemini,Entercoms,GenpactandOnProcess.

CoordinatedTalent:EffectiveSupplyChainManagementAs-a-Servicedeliveryrequiresmorethanjusttransactionallabor.Severalserviceproviders,includingAccenture,arvatoandHCL,areshowinghowtocoordinatedifferenttalentsetsacrossconsulting,operationsandtechnologytoserviceclientsbetter.

Service Provider Profiles


Accenture MakingsubstantialinvestmentsinSupplyChainManagementServicestodriveanalyticalsolutionsandrespondtotheneedsofglobalclients

Winners Circle

RelevantAcquisitions/Partnerships KeyClients GlobalOperations ProprietaryTechnologies/Platforms

Acquisitions: Gapso (2015) The Javelin Group (2015) EliteLogistics (2015)Partnerships: SAP Oracle Kinaxis GTNexus Maximo Ariba Servigistics Llamasoft Qlik

55+major SCMBPO clients, including:

DigitalMedia Technology Company Global Automobile Manufacturer Global Consumer Food Producer GlobalMobile Phone Manufacturer Communications and ITProvider North American Retailer European Consumer Electronics

Company Japanese Consumer Electronics

Company

Locations: 2,000+ SCM BPO FTEsacross~14 SCMBPO locations withadditionalsupport from 35+ other BPO centersglobally:

North America 300+ FTEs Europe 500+FTEs APAC1200+ FTEs

Accenture operates 2SCM BPO Centersof Excellence where newofferings aredeveloped. They areinBarcelona, Spain,andMumbai, India.

Application Store:platform for accessing 25+supply chainanalytics relatedapplications

Accenture Supply Chain Control Tower: 3-levelframework forintegratingsupply chain datawithprocess executioncapabilities

ASCAF:asupply chain analytics framework i-POT: Inventory planning and optimization tool Warehouse Productivity Tool: forwarehouse network analysis

and optimization Warehouse Reserve Tool: tohelp clients provision warranty

reserves and identify cost claims reduction opportunities Accenture Operations Navigator: one-stop portalfor

operational performance and business process datavisibility

OrderManagement

InventoryManagement

Manufacturing Management

Transportation Management

AftermarketServices

Master DataManagement


Strengths Challenges

Investments inSupply ChainManagement Services: Accenture Operations hasstepped up itsinvestment insupply chainmanagement services considerably sincethe2014 Blueprint inwhich Accenture wasalreadythe leader.The development of across-client analytics application infrastructure isparticularly noteworthy asitreplicates best practices intools and insights atscale. Clientswespokewithareimpressed by theseinvestments and see thedirect business impact of these tools onprocess operations.

Expanding RoleIn Client Supply Chain Operations: HfS has seen theoffering evolveoverthe lastsevenyears from acollection of smallforecasting contracts withafewlarge-scale ordermanagement deals toone thattakeson on comprehensive scopefrom clients across the SCMvaluechain. Accenture isexpanding itsroleinclientsacross processes inawaythatHfS hasnot seenwithmany of the othercompetingservice providers. This isespecially evident intherelationship withakeyNorthAmerican retailer.Accenture isnow attheverycoreof daily operations versushavingstartedin aniche support roleyears ago.

Integration ofConsulting, BPO and Technology inSCM: Inthe 2014 Blueprint, wehighlighted some of the channel and deliveryconflict between BPO and Consulting inSCM. Sincethen,wehave seen substantial progress ineliminating conflict and gettingsynergistic value outof organic investments (e.g., tools) andM&Aactivitybetweenthegroups. Thisintegration is increasingly important intheAs-a-Service evolution ofSCM, andAccenture seems tobe responding as required bythemarket.

Cross Client Intelligent Automation: HfSwould liketoseethesame levelof cross-client capability for intelligentautomation (RPA, autonomics and cognitive) in supply chainthatwehave seen emerge inanalytics insupply chain since2014. Accenture Operations hasdeployed significantnumbers of software bots insupply chain contracts, butthesebots aregenerallyclient specific and atthedesktop level.This isinkeepingwithindustry norms, but asAccenture isaleaderwithvision inthismarket, HfS expects Accenture toalso leadin thisarea.

Integration With IoTOfferings: If theInternet of Things (IoT)takesoff inanyform, which has been predicted bymany, itwillbecome acritical component of future SCMBPO delivery.HfSwould liketohearmore fromAccenture about how theIoT capabilities inside Accenture DigitalwillbeintegratedwithAccenture Operations torespond totheneeds ofthelargestglobal enterprises.

BlueprintLeadingHighlights

Actual DeliveryOf Services Flexibility InDelivering End-to-End

and Point Solutions Vision ForEvolutionOf Supply

ChainManagement As-a-Service Solutions ForAccessible And

Actionable Data Integration of Consulting, BPO And

Technology

Market Wrap-Up and Recommendations


Where to Next for SCM As-a-Service

n Analyticsofferingswillevolvefrombeingbasedlargelyonaccesstodatasciencetalentanduniquealgorithmsandwillincludespecificanalyticalapplicationsdeliveredbyserviceproviders thatdeeplyunderstandaclientsenterpriseandmarketplace

n Intelligentautomationand,inparticular,roboticprocessautomation (RPA)willbecomedeeplyintegratedintoordermanagementprocessesreducingthesizeofcurrentlaborarbitragecentriccontracts

n Enterprisesandserviceproviderswillallowsupplychainprocessestobeadaptedtoallowactiveintervention insupplychaintransactionsasaresultoftheinsightsandvisibilityprovidedbymorewidelyimplementedcontroltowersolutions

n TheincreasingadoptionoftheIoTwillresultinnewdatasetsforSCMcontrol towerstoincorporateandwillforceafundamental re-thinkingoftheaftermarketservicesindustryandwhatcapabilitiesamanufacturer(andtheserviceproviders) shouldoffertoendcustomers

n 3Dprintingwillbecomemorewidelyadoptedallowingenterprisestorethinktheirsupplychainsandputoriginalandaftermarketproductsclosertothecustomerwithknock-onimpactsoncurrentsupplychainprocesses

WeseethefollowingasthemajortrendsthatwillfosterthefutureevolutionofSupplyChainManagementAs-a-Serviceoverthenext23years:


Supply Chain Management Will More Extensively Incorporate the Ideals of the As-a-Service Economy

IDEAL AS-A-SERVICEIDEALDEFINITION

NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALLPERVASIVE

WriteOffLegacyUsingplatform-basedsolutions,DevOpsandAPIecosystemsformoreagile,fewerexception-orientedsystems 2016 2019

DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds 2016 2019

Brokers ofCapability

Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps

20162019

CollaborativeEngagement

Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes 2016 2019

IntelligentAutomation

Using automationandcognitivecomputingtoblendanalytics,talentandtechnology 2016 2019

AccessibleandActionableData

Applyinganalyticstechnologies,processesandresourcesonrelevantdatasetstoderiveinsightsthatcanhelpimproveanenterprise 2016 2019

HolisticSecurityProactivelymanagingdigitaldataacrossservicechainofpeople,systemsandprocesses 2016 2019

Plug andPlayDigitalBusinessServices

Pluggingintoreadytogobusiness outcomefocused, people,processandtechnologysolutionswithsecuritymeasures 2016 2019


2016-17 Recommendations: Enterprise Buyers

n MoveFasterandDeepertoAs-a-ServiceOfferingsfromServiceProviders.Asanenterprise buyerkeeppushingyourservice provider(s)tomovetoanAs-a-Service model thatgoesbeyondlaborarbitrage toinclude andofferyouabroadersetofchoices forwhatsolutionsyouadoptandhowtheyinteract withyourownretained organization.Dontsettle foralong-term fixedmodelofsolutiondelivery forsupplychainservices, butpushyourservice provider(s)tobeflexible andagile sothatfutureservices offeringsbetteralign toyourownpotential futureneeds.

n AdoptDesignThinking. Dontdismissdesignthinking assomething thatisafadwithlittle benefit foryourownoperations.Theopportunities tositdownwithyourservice provider(s)tobetterunderstand thebusinesscontext inwhichyourcurrentprocessesoperateandwhatcanbedonetorealign orreimaginetheseprocesses toachieve differentand/orbetter results isalwaysanexercise worthundertaking.

n Test3DPrintingand IoTImplications. Askyourservice provider(s)forinsight intohow3Dprinting, theIoTandother innovationsare likely toimpact thesupplychainprocessesyouhaveinplace todaywhether theservice providerdelivers themornot.Usequarterly businessreviews (QBRs)andotherinteractions withyourservice provider(s)toreviewtheirvisionfortheevolutionofsupplychainmanagement.

n IncreasetheTrust.Pushyourservice provider(s)tobemorecollaborative, morevisionary,moreinclusive andsharewithyou.Inturn,provide thatsameapproach totheservice provider(s).Extend thissamenewmindset tohowyouthinkofdataandphysical security tomakesurethatyourpolicies onsecurity arentcomingwithunnecessary coststoyoursupplychain.Addresstheenterprise painpointsofsupplychainandrealize theresulting businessoutcomesiseasier inaclosepartnership thaninaclosed-offzero-summindsetrelationship. So,workwithyourservice provider(s)inamanner thatfacilitates long-termsuccessaswellandaskforitinreturn.


2016-17 Recommendations: Service Providers

n MoveFurthertoAs-a-ServiceOfferingDesignandExecution.AtHfS, wearestrongbelievers intherapidmoveofBPOawayfromlegacyliftandshiftmodels towardanAs-a-Service solutiondesignanddeliveryworld.This isespecially trueforsupplychain,whichhasalwayshadsomeembodiment ofthe8IdealsofAs-a-Service inhowservice providershavesoldanddelivered theoffering.Thatsaid,there isstill significantopportunity tomovethis furtherforwardandbringamoremodularyetend-to-endsolutionstackforsupplychain intotheenterprise client sothatthere istighter integration between theservice providercapabilitiesandthoseofthe retainedorganization thanwehaveseenthusfar.

n AskforControl.Service providershavebeenimplementing controltowersolutionsnowforseveralyears, butinmanycases,these toolsarebeingusedforgreater visibility insteadofasameans tointervene inerrantsupplychainprocesses. Itstime tostepupandmoveinthese instances fromvisibility toactive intervention,andthatrequiresasking forthiscontrolandadapting theprocessesandgovernance tosupportthischange.

n ImplementRoboticProcessAutomation intheSupplyChain.Roboticprocessautomation (RPA)iscertainlythetopicofthemoment inprocessdelivery circles,butoutsidesomeordermanagement andaftermarketprocesses, theapplication ofRPAinsideend-to-endsupplychainprocesses remains limited. HfSbelieves thatRPAisameans toanendforsupplychaindelivery bydecoupling laborandgrowth,especially intransactional support,andservice providers thatadoptthese technologies extensively willhavealegupforthenext fewyears.

n PreparefortheRiseoftheIoTand3DPrinting.Theymightnotbemainstream technologies atthestartof2016,but3DprintingandtheIoTarebecoming thatway.Research labs, consulting teamsandSIunitsinsideeachmajorservice providerareworkingwithclients aroundthese technologies today.However,the lessonslearnedmaynotyethavemadetheirwayovertothesupplychainmanagement grouprunningday-to-dayoperations.Putaside investment fundsthisyeartoencourage thatcollaboration sothatasaservice provideryoucansharethesesame insightswithclientsandimplement design thinkingsessionstounderstandwhatthepositive (andnegative) impactswillbeforclientoperations.

About the Author


Charles SutherlandChiefResearchOfficer,HfSResearch Dallas,TX

Overview Overseestheresearchagenda andtheanalystteamforHfSacrosstheAs-a-Service

Economy Personallycoverstheareasofdigitalservices, intelligent automation andbusiness

platforms,aswellasthesupplychainandprocurement businessfunctions. Overamorethan25-yearcareerhasfocusedonhispersonalskillsinauthoringthought

leadership,developing implementable strategies, executing onacquisitions, drivingbusinessdevelopment effortsandmanaging long-terminvestment planning.

SincejoiningHfSin2013,Charlesspokenwidelyat industryforums,includingNASSCOM,ABSLandSIG,andhashadhisresearchcoveredwidelyinthebusinessandoutsourcingpress.

PreviousExperience Charleshasbeeninthebusinessservicesmarketfor20years.Previousrolesinclude:

- Growth&StrategyMDforAccentures multi-billion-dollarOperationsGrowthPlatform

- ChiefStrategyOfficerfora$500MBPOServiceProvider- Growth&StrategyforApplicationandInfrastructureOutsourcing,Accenture- Growth&StrategyforCommunications, MediaandHighTechOG,Accenture- Media&Entertainment StrategyConsultant,Accenture- MarketingDirector,Olivetti

Education MBAfromINSEADinFontainebleau, France HonorsBAinEconomics andPoliticalScience fromtheUniversityofToronto

[email protected]


About HfS ResearchWecoinedthe As-a-ServiceEconomy termbecauseweseeaprofoundchangeunderwaythatismoreall-encompassingthanasimplebusinessmodelorproductline.Itsaglobalshiftthatwillleavefewsectorsofbusinessorsocietyuntouched.

TohelpourclientsandthemarketgettotheAs-a-ServiceEconomy,weservethestrategyneedsofbusinessoperationsandITleadersacrossfinance,supplychain,humanresources,marketingandcoreindustryfunctionsinorganizationsaroundtheworld.HfSprovidesinsightfulandmeaningfulanalystcoverageofbestbusinesspracticesandinnovationsthatimpactsuccessfulbusinessoutcomes,suchasthedigitaltransformationofoperations,cloud-basedbusinessplatforms,servicestalentdevelopmentstrategies,processautomationandoutsourcing,mobility,analyticsandsocialcollaboration.HfSappliesitsacclaimed BlueprintMethodology toevaluatetheperformanceofserviceandtechnologyintermsofinnovatingandexecutingagainstthosebusinessoutcomes.

HfSeducatesandfacilitatesdiscussionsamongtheworldslargestknowledgecommunityofenterpriseservicesprofessionals,currentlycomprising100,000+subscribersandmembers.HfSResearchfacilitatestheHfSSourcingExecutiveCouncil,theacclaimedelitegroupofsourcingpractitionersfromleadingorganizationsthatmeetsbi-annuallytosharethefuturedirectionoftheglobalservicesindustryandtodiscussthefutureenterpriseoperationsframework.HfSprovidessourcingexecutivecouncilmemberswiththeHfSGovernanceAcademyandCertificationProgramtohelpitsclientsimprovethegovernanceoftheirglobalbusinessservicesandvendorrelationships.

HfSblazedthetrailforthefreemiumresearchmodel.Morethan75%ofourpublishedresearchrequiresjustafewcheckboxesinoursimpleregistrationtodownloadnosubscription,nohassles.

TolearnmoreaboutHfSResearch,[email protected].

hfs blueprint grid: supply chain management as-a-service

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