IDC’s year 2020 predictions for the supply chain for Shipping, Logistic, Sea freight and Air freight for companies in Dubai

It can be scary looking into the future, but it can also be exciting. However, it falls into the latter category when it comes to the supply chain, especially when looking at the year 2020 supply chain predictions.

The predictions for the year 2020 in its 15th year now dive into the frenetic pace of change happening in the myriad facets of the supply chain and its continuous  trajectory of nearly unprecedented change rates.

The use of digital technologies to improve efficiency and effectiveness in the short term, while offering the opportunity either to interrupt their market segment or be resilient to those who might try, is the overriding priority now for most producers and retailers.

IDC said that the year 2020 predictions for the supply chain investments which are described below, including both near- and long-term investments with the expected effect in the next few years:

Prediction 1: 

Half of all manufacturing supply chains will have invested in the resilience and artificial intelligence by the end of the year 2021, resulting in a 15% increase in productivity;

Prediction 2: 

By the year 2022, companies will offer 35% of their logistics business process outsourcing services budget on process automation, concentrating on ordering, inventory and shipment tracking;

Prediction 3: 

Half of all major manufacturers will have an automated provider supplier by the end of the year 2020 and will use data analysis to increase their productivity by 15%;

Prediction 4: 

One-third of all new technology investments in manufacturing and retail will be covered by supply chain micro-applications extensions by the year 2023;

Prediction 5: 

65% of warehousing operations will use robots and situational data analytics by the year 2023 to allow storage optimization, increase capacity by more than 20% and cut work order processing time in half;

Prediction 6: 

To reduce the stress on the service supply chain, 25% of OEMs will help the blockchain to source spare parts by the year 2023, by increasing the usable parts by 60% and reducing expedite costs by 45%;

Prediction 8: 

By the year 2024, 75% of all customer-facing companies will be able to customize at scale within their supply chains, contributing to an average increase of 2-3 percentage points in market share;

Prediction 9: 

By the year 2022, the number of  companies providing flexible warehousing solutions will increase by 50% to help meet seasonable demand challenges and reduce fixed overhead costs by over 20%;

Prediction 10: 

By the year 2024, 40% of customs companies will be joining private blockchain and API-powered trade platform ecosystems to reach a 50% increase in cross-border compliance.

The report’s exceeding the theme of digital transformation truly reflects the trends and themes in the supply chain of today, such as machine learning, AI, blockchain and many others.

A growing concern in connection with digital transformation is that agencies are too seduced by the “attractive” device or use case, which loses sight that data quality matters to them.

You run the risk of really fast “Garbage In and Garbage Out”  in a world of IoT, AI and advanced analytics, and thus data quality becomes more important because you rely on it more than ever.


Although these predictions are not clear, they provide a very strong foundation for planning, not only in the year 2020 but far beyond that as well. The value and significance of information and “digital transition” were highly stressed by IDC, and it is fair to say that its value will only expand to stakeholders on the supply chain for Shipping, Logistic, Sea freight and Air freight for companies in Dubai. Contact us at most trusted shipping companies in Dubai for any information or clarification, and our specialized team will handle all your Shipping, Logistics, Sea freight and Air freight in our Dubai office.