Table of contents:

• 1. Introduction
• Vendor SCM BPS covers demand planning through after-sales support
• 2. Changing Shape of Next Generation SCM BPS
• The current SCM BPS market remains driven by order management cost reduction and improved demand forecasting…..
• …with the future digitalization of the SCM BPS market moving to touchless order processing and use of blockchain to manage supply chain integrity
• 3. Customer Requirements
• SCM functions currently reactive and over-reliant on historical information
• Organizations are looking to outsource SCM services to achieve better visibility and performance
• Organizations are changing how they outsource, putting more of the onus of investing in development on the vendors
• Next gen SCM BPS is typically delivering order delivery cycle time reduction of 15-20% and improvements in forecast accuracy of 10%-30%
• Arvato reduced costs in product serialization for pharmas in response to the EU Falsified Medicines Directive
• Capgemini assisted FMCG company with ~400 brands & ~$63bn annual revenue in achieving ~10-20% improvement in forecast accuracy across product lines
• Capgemini assisted multinational medical device, pharma & CPG company with ~$70bn annual revenue in achieving ~$7m in external manufacturing operational savings over 5 years
• Exertis reduced air freight costs ~50% for a French multinational energy management corporation with $28bn annual revenue
• Genpact reduced inventory by ~50% for a hi-tech client with ~12 factories, ~400 channel partners and ~10 demand forecasting units
• GEP synchronized demand forecasting & production planning for a $6bn global chemical company driving annual cost saves of ~$500m
• Infosys achieved ~$75m cost reduction in order management for a global leader in hardware & network equipment manufacturing
• OnProcess Technologies drove ~$3m in annual cost savings for a global oncology radiation treatment OEM with ~$1.3bn annual revenue
• TCS generated direct revenue of ~7.8m with rebilling process of nonreturned parts for a Fortune 50 global conglomerate’s healthcare diagnostic image media business in the U.S. & Canada
• Tech Mahindra reduced TAT for customer orders by ~30% for a large telecom company
• Wipro delivered ~36% ROI by automation or order management for a large telecom equipment manufacturer
• WNS assisted a Fortune 500 cosmetics company in achieving ~20% reduction in order delivery cycle times
• 4. Market Size and Forecast
• North America and EMEA currently account for ~90% of the SCM BPS market with strong growth also expected in APAC
• CPG & retail will remain the dominant sector for SCM BPS through 2022
• 5. Vendor Market Shares
• The global SCM BPS market is led by Arvato, followed by TCS, Infosys, Genpact, Wipro, Accenture, HCL Technologies, & OnProcess….
• ….challenged by DXC Technology, Cognizant, EXL Service, Capgemini, Tech Mahindra, Sutherland, GEP, and IBM
• The North American SCM BPS market is led by TCS, Wipro, Infosys, Arvato, HCL Technologies, OnProcess, Accenture, & Cognizant
• ….followed by DXC Technology, Genpact, Sutherland, Capgemini, Tech Mahindra, GEP, and IBM
• The EMEA market is led by Arvato, TCS, Genpact, EXL Service, Accenture, Infosys, DXC Technology, Capgemini, & Tech Mahindra….
• ….followed by HCL Technologies, OnProcess, GEP, Exertis, and Sutherland
• 6. Delivery in Next Generation SCM BPS
• 84% of SCM BPS delivery personnel are based offshore, predominantly in India
• Proprietary tools used in SCM BPS include platforms for dashboards and analytics…..
• …demand forecasting and promotion effectiveness…..
• …..master data, order and logistics management….
• …..service and shopfloor support as well as more general-purpose automation and AI platforms
• Key elements of Next Gen SCM BPS include automation, cognitive/machine learning….
• ….Social media insights, mobile-enabling, and drone-based warehouse management
• …with blockchain and connected operations becoming key to the future
• 7. Challenges and Success Factors
• Key vendor success factors include deep domain expertise combined with ability to reinvent supply chain processes using analytics, ML, and blockchain…
• …while the biggest challenges for SCM services vendors include acquiring onshore SMEs and moving beyond consulting & project assignments
• Appendix I
• Vendors Researched