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In early November, the United States formally notified the United Nations it would pull out of the Paris Agreement made by the U.N. Framework Convention on Climate Change. The American plan to withdraw was initially announced in June 2017, and will be completed by Nov. 4, 2020. In doing so, the U.S. will be one of the only nations that is not part of this environmental agreement. Experts say that decision could impact global supply chains in a number of ways.

For its part, the Trump administration, which made the decision to withdraw, cites statistics which show emissions have declined sharply from 1970 and 2018, and the national economy has largely grown for much of that nearly 50-year period, according to Supply Chain Management Review. However, many major companies in the U.S. that depend heavily on international supply chains originating overseas have condemned the decision, including titans like Apple, Google, Walmart, DuPont and more.

The Paris Agreement was intended to help curtail rising temperatures around the globe, as well as empowering countries to more effectively deal with the effects of climate change on their land and economies, the report said.

Are power providers on course to significantly reduce carbon emissions?Are power providers on course to significantly reduce carbon emissions?
Big concerns
Among the issues for the Paris Agreement in the first place is that while shipping routes may be optimized to reduce waste and other aspects of the supply chain can be altered to be more eco-friendly as well, the elephant in the room is related to power generation. According to a recent survey by the Transition Pathway Initiative, through the University of Oxford, relatively few energy companies even acknowledge the need to get to a point of net-zero carbon emissions, and even fewer are willing to commit to it.

Companies at every step of the supply chain, of course, rely on electricity generated by large energy companies rather than smaller efforts that can be boosted with renewables, the report said. As such, it will be critical for businesses to see how sentiment shifts in the next few years and beyond before making any hard and fast commitments.

The pressing issue
The reason this is all so impactful for the supply chain as a whole is the Paris Agreement spells out how national and global laws will be crafted for everything from energy to agriculture - all of which are critical for maintaining today's strong and ever-evolving supply chains, according to an editorial in The New York Times by a Walmart executive and the president of the World Resources Institute.
There are many issues climate change presents to big business, from "an increase in the net number of days per year that their facilities will require refrigeration" to the reality that "produce and other foods will be threatened," the editorial said. As a consequence, many companies can be expected to do their part to deal with these issues, at potentially great cost to their near-term bottom lines, even without guidance from the federal government.

Nonetheless, this decision will likely alter the ways companies approach their own climate change needs in the years ahead, and that will require even more careful planning than before.

The purpose of a spend analysis is to identify areas of opportunity and then plan out how you wish to accomplish targeting these areas. The main takeaways from conducting a spend analysis are to see how much you are spending, see your suppliers and their usage, and following through to see if you are getting what you were promised. By analyzing spend, you are able to decide if you would like to consolidate your suppliers and spend. You are also able to benchmark your spend and suppliers against industry competitors to see how you are doing. It is believed that organizations with spend analysis programs have more efficient procurement operations and stronger supplier relationships.

Businesses who run spend analyses tend to be more cost effective, have faster cycle times, are more efficient in regards to processes, and have greater staff productivity. These benefits arise from seeing where the problems may lay and then going back and tweaking any issues. Even the slightest changes can cause drastic improvements in procurement. The spend analysis shows an organization areas where they can improve their costs and efficiency. This information then allows companies to rework their structure and look into current and potential suppliers. They will pursue supplier relationships where they are able to have faster response times and lower overall costs in securing materials and services. In addition to faster lead times, the processes in general become more streamlined. This translates into less employees needed, which reduces the amount of salaries you have to pay.

When comparing two companies, one who runs a spend analysis program and one who does not, the results are eye-opening. The two company’s discussed both have revenues of about $5 billion. It is believed that the company running a spend analysis program would spend $8.5 million on procurement activities while the company who does not have a spend analysis program would spend $19.5 million on the same procurement activities. The company who does not implement spend analysis programs is spending more than double the company who does. Over time, this increased spending adds up and takes away from the bottom line. The graph below depicts how much the procurement cycle composes their total revenue. As an organizations performance increases, their procurement costs become more than half of their revenues. Should more efficient processes be put in place due to spend analysis programs, revenue could be significantly greater.

A lot of useful information can be obtained when generating spend analysis reports. Although the information created is constructive, if no changes occur, it is ineffective. Every organization can improve in some form, and spend analysis programs are a great opportunity for growth and improvement.

One of the biggest issues many companies face these days is that while there can be a big internal push to adopt new processes or technologies, they're not always easy to understand. This issue may be particularly evident when it comes to the supply chain, because its many moving parts requires a deep level of understanding for everyone involved. That may be particularly true for the executives making these decisions in the first place.

The good news is that, increasingly, companies recognize the need for a strong approach to solving their supply chain issues, but all too often, the executives behind the decisions may not comprehend the full implications of each choice they make, according to supply chain expert Joyce Mazero, writing for Forbes. For that reason, it's important to get a perspective from the people who deal with the company's supply chain issues on a daily basis.

As with many other things in business, this is not a "set it and forget it" proposition, the report said. The lines of communications between the boardroom and those actually making direct contact with partners in the supply chain day-to-day should be open, with managers able to check in regularly and those on the ground being able to raise concerns easily.

The best boardroom decisions involve people from outside the boardroom.The best boardroom decisions involve people from outside the boardroom.
What's needed?
The majority of companies in the supply chain increasingly see the need for improvement as demand for their services grows, according to a new survey from Project44. Today, 85% of executives at companies engaged in B2B transactions felt under pressure to expand or otherwise improve their delivery capabilities, and 79% say they know they're using less-than-ideal processes to manage production, logistics and so on.

As such, 73% of those polled said they feel pressure to improve these processes as a direct result of changing expectations, but there's a disconnect inside those businesses, the report said. For instance, while 82% of direct supply chain managers say this is an issue, that view is only shared by 57% of executives, potentially highlighting the remove the latter has from the situation on the ground.

What's at stake?
All this comes at a time when companies are investing heavily in supply chain efficiency, so the greater understanding between managers and executives is a must, according to Brink News. After all, if execs are making big-money investments in new technology that doesn't necessarily address
their current and future needs, that's a potentially costly misstep.

The more executives can do to understand the risks they face in the ever-evolving world of supply chain optimization, the better off they will be when it comes to tackling these issues, making their firms more cost-efficient, and increasing their standing in the market, the report said.

When decision-makers put processes in place enable a stronger connection between themselves and the issues their employees face on a daily basis, they make it easier to take the next step as an organization and keep up with not just the competition, but also their supply chain partners' expectations.

Throughout his first presidential campaign, Donald Trump made international trade relations an important component of his platform. Emphasizing unbalanced trade relations, he promised to put America first by renegotiating trade deals and investing in the nation's workforce. As President, this has meant levying massive tariffs on China, the EU, and other nations as well as replacing NAFTA with the U.S.-Mexico-Canada Agreement (USMCA). His moves have divided Americans on both side of the aisle and made international trade and supply chain management the subjects of everyday conversation. Predictably, they've also been important issues for the Democrats hoping to challenge him in 2020.

If you've been keeping an eye on the campaign trail, you're aware of the fact that there are a lot of Democrats in the running. Though it's getting harder and harder to make it to the debate stage, there are still nearly twenty Democrats vying for their party's nomination - a new one just joined the race today. To keep things simple, we're only looking at the ten candidates who've qualified for next week's debate in Atlanta.

The Democratic Candidates on Trade

Former Vice President Joe Biden: Biden calls for America to play a leading role in redefining international trade with a "modern, inclusive process." This process, his campaign site notes, will introduce rules to protect worker's rights, raise wages for the middle class, and put environmental safeguards in place. Calling President Trump's "America First" approach into question, he advocates for collaboration with "our friends in both Asia and Europe" to write the new rules of trade.

New Jersey Senator Cory Booker: Booker has not announced an official trade platform. He has, however, addressed the topic in an interview with the Council on Foreign Relations. During that conversation, he charged the Trans-Pacific Partnership with "put[ting] large corporations before workers" and expressed his support for "a trade deal that, at its core, is focused on advancing the American worker and working families."

South Bend, IN Mayor Pete Buttigieg: Though Mayor Pete has yet to reveal a comprehensive trade platform, he has been  a vocal critic of Trump's trade policies. He did, however, acknowledge that he would "include tariffs as leverage" during negotiations as President. He would not join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and would call for updates to the proposed USMCA.

Hawaii Representative Tulsi Gabbard: Neither NAFTA nor the USMCA makes an appearance on Representative Gabbard's campaign website. She has, however, criticized President Trump's "unpredictable shoot-from-the-hip approach" to international trade, calling it "counterproductive to the interest of our country." As President, she has promised to reintroduce a sense of stability to the lives of American farmers and manufacturers.

California Senator Kamala Harris: Though she's criticized President Trump's approach - arguing that harsh tariffs hurt American workers and consumers - Senator Harris has also expressed her interest in addressing China's trade policies. She would, as President, "oppose any trade deal that doesn't look out for the best interests of American workers" while simultaneously "rais[ing] environmental standards.

Minnesota Senator Amy Klobuchar: Representing Minnesotan farmers and manufacturers, Klobuchar has had to walk a tightrope on the subject of tariffs. While she supported President Trump's tariffs on steel and aluminum, she has nevertheless called on the President to end the trade war and promised to review (and potentially revise) all existing tariffs during her first 100 days in office.

Vermont Senator Bernie Sanders: "Trade is a good thing," Sanders' campaign site reads, "but it has to be fair." The Democratic Socialist promises to help strengthen international groups like the World Trade Organization to more effectively address issues like trade imbalance and intellectual property theft. Domestically, he expresses his desire to "undo the harm that trade agreements have done to family farmers."

Tom Steyer: Identifying himself as both a progressive and a capitalist, Steyer states that he will renegotiate existing international trade agreements. Crucially, he has also pledged to bring additional parties into these negotiations including trade unions, indigenous populations, and environmental action groups.

Massachusetts Senator Elizabeth Warren: Warren has emphasized the need for more transparency in trade negotiations. As President, she would require negotiators to publish their proposals and allow time for the public to comment on them. She would also introduce new requirements for America's trade partners including membership in the Paris Climate Agreement. While she regards tariffs as an "important tool," she believes they are not the stuff of long-term trade strategy

Andrew Yang: Outlining his international trade policy, Yang pledged to "ensure that any trade negotiation includes stringent environmental standards." By far the most vocal candidate on the subject of automation, he considers AI more dangerous to the American worker than any foreign power. He has, however, expressed interest in rejoining the Trans-Pacific Partnership or "negotiate a similar deal" to address China's growing influence.

It feels like we've been talking about 2020 since November of 2016, but there's still another year to go before voters cast their ballots. As tariffs and trade conflicts continue to make headlines, expect President Trump and each of his potential opponents to say much more on the subject between now and Election Day 2020.

Better connections and visibility are increasingly common twin goals for many companies at every step of the supply chain, and technology is doing more all the time to make these objectives realistic. The internet of things, in particular, provides the kind of visibility companies have longed for, and because the rates of adoption for such tech is only beginning to gain steam, the impact on the supply chain could be massive.

There are already tens of billions of IoT-enabled devices in circulation worldwide - though obviously not all are used in the supply chain specifically - and that number could more than triple by 2025, according to Supply & Demand Chain Executive. As companies find new avenues with these devices to collect data, they are also willing to share that data with their partners at every step of the supply chain, and as these kinds of investments and decisions gain momentum, more visibility comes to these processes. That, in turn, will enable greater efficiency and better decision-making.

"There is a movement, or an evolution, that is occurring in the manufacturing space where customers are becoming more and more demanding to have access to that data," David Gustovich, senior director of Manufacturing Center of Excellence and the former founder and CEO of IQity Solutions, told the site. "The market is responding."

Visibility requires buy-in at every step of the supply chain.Visibility requires buy-in at every step of the supply chain.
Better connections
One of the big stumbling blocks with respect to broader adoption is the fact that connection speeds and capacity just aren't great enough along entire supply chains to truly give great insights for all involved, according to Supply Chain Dive. However, with the advent of 5G connections, that might become a thing of the past; the majority of companies now plan to use 5G technology by the end of 2020.

While many service providers may not be in a position to keep up with that pace, having the infrastructure in place throughout the supply chain will certainly be a boon for any company that wants to be among the first to at least get a foot in the door, the report said. This will likely take some strategic planning and will certainly require investment, but any such effort would likely prove fruitful in the years ahead.

Other considerations
The reason the logistics industry as a whole is changing so much is because consumers' preferences are evolving rapidly, according to Coresight Research. The more that can be done to ensure orders are fulfilled within a 24-hour period of being completed is likely to be the industry's next great leap forward in terms of meeting consumer expectations. Some companies are pushing the envelope even further now, aiming for same-day delivery whenever possible; they will require IoT and 5G at the very least to make that happen.

Certainly, supply chain executives should strive to understand their needs and the options available to them as time goes on, because true visibility into operations requires buy-in from all involved.

I am sure you've all heard the big announcement by now. Today, November 12, 2019, Disney+ is released and millions of fans will have access to all of the wonderful Disney (and Disney owned) content from over the years. This will surely excite fans of the classics like Lion King and Toy Story, but also those who revel in the new age marvels like The Avengers. Disney drives to reinvent the way they distribute content to fans of all ages by going modern and introducing a state of the art streaming platform.

If a business, organization, product, or even an idea is to remain relevant, it must adapt to the times. Disney+ is far from the first streaming provider that only offers content from their own making or ownership. HBO, BET, and a multitude of other platforms all do the same thing. The competition driving this trend gives consumers more of a choice and gives businesses a leg up over others IF they can do it well. As an avid media consumer, my only hope is that I don’t end up with 8+ subscriptions to keep tabs on my favorite content.

But what about other spaces? And because this is a procurement blog, what about procurement? It’s time that we start doing things differently, too. And that’s just what the Chicago Chapter of ISM’s Emerging Leaders Committee aims to do.

On the day before Halloween, October 30th, 2019, the Emerging Leaders group held their first event, “Bridging the Talent Gap.” The city atmosphere was rainy and a bit dreary, but the facilities of HERE Technologies featured a welcoming environment, sophisticated décor, and (obviously) state of the art technology. Marie Mensah, a seasoned consultant in the procurement field, took the stage and gave a wonderful presentation focused on the career development of sourcing professionals. A panel discussion with industry experts soon followed. The session ended with an interactive breakout activity of group work and presentations by the event attendees. You can find more about what happened here.

This event answered some serious questions about Procurement. And no, it wasn’t about best practices or sourcing strategies. It answered, “What do rising experts want from a professional organization?”

Through a comprehensive survey (and candid conversation over happy hour drinks), we found some great gems to share with you.

1. More representation and diversity

Representation and diversity mean a lot of things here. First, let’s start with the obvious. The world is becoming more diverse and Chicago is a hub for that representation. The panel consisted of individuals from different backgrounds and origins. But the panel was also split well between men and women. Furthermore, the room was filled with a wide range of industries. Manufacturing, Finance, Technology, Healthcare, and many others found tremendous value in the event. In addition, roles expanded beyond just procurement.

Using what we learned, we can adapt our roadmap for the future. For future events, we will strive to involve a diverse set of industry experts and include more than the traditional procurement role. This will feature activities that individuals in Audit, Finance, Vendor Management, and Project Management will benefit from and enjoy. Sundar Pichai, CEO of Google, says, “A diverse mix of voices leads to better discussions, decisions, and outcomes for everyone.”

2. More hands-on learning at events

The highlight for many attendees was the workshop and presentations during the event. The opportunity to work together with other professionals, share and debate ideas, and then present to the broader audience is the precise level of engagement participants want from an educational/development event.

Moving forward, more events will be focused on hands-on activities and workshops. Part of our goals will be to focus on attendee participation and direct learning outcomes that put learning material into practice. This comes from the well-known quote, “Tell Me and I Forget; Teach Me and I May Remember; Involve Me and I Learn.”

Future events will put attendees in real situations. Imagine participants being able to provide material procurement advice to small businesses around Chicago or influence large corporations or governmental policies based on the results of an ISM workshop or event.

A fascinating part of this practice is that it follows the best parts of the CPSM certification learning track.

3. More brews! I mean…. networking

To put it bluntly, people are shy. But also, by overwhelming amounts, people want to network. Many see networking as one of the most valuable tools to advance their career, often saying, “It’s not what you know, but who you know.” And this is true. LinkedIn’s massive success is due to the shared desire to build professional networks. It’s one of the purest ways to share expertise while engaging in meaningful interaction.

Work Hard, Play Hard. After spending a few hours learning or workshopping an idea or concept, unwinding over drinks and hors d’oeuvres is the perfect ending to the day. This not only allows for the wonderful enjoyment of signature cocktails, but also creates the ideal space for expanding on that great topic from earlier, pitching something completely new to listening ears, or showing off that neat new party trick you’ve been waiting to display.

The ISM Emerging Leaders Committee aims to do something different here in Chicago and inspire innovation across the globe. We welcome creativity and listen to what the budding professionals want. We are resolute in driving engagement through diverse representation, interactive activities, and meaningful networking.

Please contact ISM Chicago if you are interested in joining the team.
Managing a warehouse is never easy, but it doesn't have to be quite so challenging. Check out our tips for establishing and sustaining a world-class warehouse. You'll enjoy the benefits of optimal workflows, manageable inventories, and transparent communication - and that's just the start.

Forecasting is everything in Supply Chain Management. Organizations can't serve their customers, meet their goals, or even keep the lights on without looking ahead and planning accordingly. Supply forecasting, for example, helps organizations determine how and when they'll receive the products and components they need. Demand forecasting helps them distribute their own products effectively and avoid getting bogged down in uncertainty and excess inventory.

Organizations in certain regions and industries depend on forecasts of a more literal sort. Extreme weather - an increasingly common issue - wreaks havoc on shipping lanes and supply networks every year. As natural disasters become more frequent and more destructive, Procurement professionals are hard at work identifying solutions and strategies that will make it possible to accurately predict such risk factors.

Procurement Must Become Predictive

Unsurprisingly, Deloitte's latest CPO survey found that Procurement teams are uneasy heading into a new decade. The list of risks facing the function includes new entries like "economic downturn" and "trade war" as well as perennial challenges related to internal complexity and digital fragmentation.

Even early adopters are struggling. 81% of organizations who've fully adopted digital Procurement technologies are still unsatisfied with their ability to address risks across their supply base. This suggests that perhaps organizations have put too much faith in their tools, implementing new technology without effectively training their teams and providing for quick adoption.

On paper at least, CPOs are committed to closing the analytical skills gap to make more predictive, accurate forecasting a reality. 43% identified "predictive analytics" as their primary focus when it comes to nurturing digital skills in the next twelve months. They've got a long road ahead. Digital skills gaps like this one are widely acknowledged as perhaps the most pressing challenge facing today's Procurement teams. As markets grow increasingly volatile, technology grows increasingly mature, and consumers grow increasingly discerning, they'll need to close these gaps both quickly and definitively.

Consumers Want Action, Not Forecasts

Procurement teams that fail to make accurate forecasts and take proactive action also run the risk of alienating consumers who have grown increasingly conscious of supply chain ethics and environmental responsibility. There is little patience for organizations that drag their feet on topics like climate change and human rights. Even companies like Amazon - who recently made ambitious promises to leverage electric vehicles and address deforestation - have seen consumers express cynicism and disdain. Just a day after that announcement, Amazon saw thousands of its workers take to the street for the Global Climate March. Many held signs with slogans like, "Good start, Jeff." The message is clear: forecasts and predictions won't cut it anymore. 

Even more proactive organizations have learned that forecasts can be a double-edged sword. In October, both Nestle and Procter & Gamble announced that they would fail to meet many of the goals they set at the start of the decade. Both consumer products giants promised to fully eliminate deforestation across their global supply chains before 2020. Though both made considerable progress thanks to visibility-boosting technology, they will enter the new decade with work to do.  

Sweeping promises have become de rigueur for businesses hoping to win over customers and stand on the right side of important issues. P&G and Nestle, however, present a cautionary tale. Organizations that can't live up to their promises, can't make their forecasts a reality, run the risk of disappointing their customers and even damaging their reputations. It's possible that organizations will think more carefully before revealing the details of their forecasts and action plans.

Procurement's Decade Ahead

Check out the rest of our series on the trends and topics that will define Procurement in 2020 and throughout the next decade:

When businesses are trying to get a handle on their supply chain efficiency, one of the biggest areas for improvement is security. Simply put, too many companies see it as a component of their operations, but may not ascribe it the importance it necessarily deserves. There are many different components to such an effort, and all of them may need an extra look for any firm to truly control its various supply chains.

Among these issues is the increased threat of a hacking attack, which have become more prominent as hackers around the world get a better understanding of the potential value these targets provide, according to CSO Online. In the past several months alone, a number of major companies both in the U.S. and abroad have been hit with attacks, and government agencies the world over are becoming more proactive in fining affected businesses above and beyond the financial obligations that come with remediating such an attack.

Hackers pose a grave threat to supply chains.Hackers pose a grave threat to supply chains.
This issue is a particular problem for companies that partner with third-party service providers and other outside businesses - a crucial part of many supply chains, to be sure, the report said. Even if everything is in order with a company's own security issues, it can be difficult or even impossible to enjoy such certainties when it comes to partners at any given step of the supply chain. However, all necessary efforts must be undertaken to get as much assurances as possible around supply chain security.

A bird's-eye view
The more companies can do to get a handle on third-party attacks, which by some estimates have risen by as much as 50% in recent years, the better off they will be as it relates to mitigating hacking risk, according to Infosecurity Magazine. While all involved will have to accept a certain amount of delegation in this regard, a concentrated group effort throughout the supply chain will at least provide more visibility into all aspects of risk and operations, which may be key to spotting potential vulnerabilities.

This is, of course, a complex and potentially costly process, but more buy-in from all participants
provides not only the security those involved need, but also reduced risk of accruing the expenses associated with a data breach cleanup effort and potentially greater regulatory oversight, the report said. In many cases, this may require collaboration, spelling out goals and so on, but the end result would typically yield peace of mind and cost certainty.

What's being done?
Today, those in a position of authority have a greater understanding of the threat they face and are willing to invest appropriately to address it, according to the new Future of the Supply Chain survey from Vuealta. More than 4 in 5 U.S. businesses now believe the increasing complexity of the supply chain poses a risk, and more than half have at least five other companies in those processes. Not surprisingly, more than 2 in 5 say they are relying on new technology to help insulate them from risk.

The more your company can do to identify threats and move to address them collectively, the better off all involved will be.

ICYMIM: November 11, 2019

Source One's series for keeping up with the most recent highlights in procurement, strategic sourcing, and supply chain news week-to-week.  Check-in with us every Monday to stay up to date with the latest supply management news.

Supply Chain Transparency Critical to Slowing Down the Amazon Deforestation
Franco Vessio, Future of Sourcing, 11/7/2019
The largest rainforest in the world, which is home to over 3 million species of plants and animals, has suffered from over 72,000 fire outbreaks just in 2019. While the catastrophes don't seem to be slowing down, businesses such as H&M and the VF corporation are halting sourcing from the country. Franco Vessio explains how businesses are becoming more and more of the deforestation issue and its impact on the climate issue.

Onshoring vs. Offshoring: 4 Indications the Tide is Turning in Manufacturing
Jim Quinn, Future of Sourcing, 11/06/2019
U.S. companies are unsure how the trade war will continue and with the threat of even more tariffs, they need a plan. Generational trends are also causing major shifts in workforce patterns and manufacturing is seeing a shortage of factory workers.  Jim Quinn will demonstrate how tariffs, employees, and other factors like innovation are changing manufacturing for good.

The Potential and Risks of Cryptocurrency in Procurement 
Kelly Barner, Buyers Meeting Point, 10/28/2019
Blockchain is a Procurement buzzword and many associate blockchain technologies with bitcoin. So does cryptocurrency play a role in procurement? If so, other cryptocurrency projects have indicated this might be a risky path to follow. Kelly Barner paints a picture of what the relationship with cryptocurrency and procurement might look like. 

This winter, high-level procurement executives will gather in Coral Gables, Florida for the Consero Group's Procurement & Strategic Sourcing Forum. Throughout the three day event, they'll exchange insights on topics including the growing role of data science in Procurement, emerging technologies, and the future of the workforce. 

On Day 2, Corcentric Director Anthony Mignona will moderate a panel on tail spend management. The session, titled Effectively Managing Tail Spend, includes thought leaders from organizations including Herman Miller, Scholastic, and Regeneron Pharmaceuticals. They'll share the strategies they've employed to turn tail spend from an afterthought to a source of strategic value. 

To learn more about historical approaches to tail spend management - and strategies for handling it more effectively check out Anthony Mignona's recent appearance on our podcast.

This guest blog comes to us from Heather Redding of Daxima.

As artificial intelligence, the internet of things, and machine learning continue to evolve, autonomous vehicles are becoming increasingly likely.

Automobile manufacturers aren't just designing autonomous vehicles to help people reduce the stress they face on the road. The right automated vehicles have the potential to reduce accidents by improving driver safety and reaction times too.

With so many benefits to offer, it's no wonder that countless manufacturers are investing heavily in the potential of self-driving technology.

So, when can we look forward to being chauffeured around town by AI-enhanced vehicles connected through 5G?

What's next for the age of the driverless car? Here are a few predictions.

1. Assistance Will Come Before Autonomy

Artificial intelligence is everywhere these days, offering insights into the supply chain, and guidance on procurement, monitoring security in businesses and your health too.

There's a big difference between a car that can provide you with helpful information on the go, and one that can do all of your driving for you.

We're still a long way away from fully-autonomous cars, particularly because new systems and regulatory rules will need to be put into place to allow for automated cars.

In the meantime, manufacturers will need to focus on assistance, over autonomy, in the form of in-car voice control developments and automated assistants behind the wheel.

Voice is quickly emerging as the interface of the future for drivers. Voice is safe and easy to use, and it means that we can keep our eyes on the road.

With intelligent data analytics and real-time insights, voice-based assistants can start to simplify the driving experience by offering personalized guidance and information on the move. Expect your robotic cars to be driving helpers, before they take the wheel. 

2. Apps Will Increase in Value

As intelligent assistants continue to make their way into the car control system, manufacturers will also need to invest in connections with a wider range of app developers, to help them offer more features and information.

For instance, real-time location data is one of the major focuses of many of the emerging trends in the autonomous driving space.

By 2020, the global in-car infotainment market will be worth $35 billion. This rise in value is being powered by things like augmented reality, mixed reality, the internet of things, and other tools that change the way that passengers and drivers interact with the world.

Just as manufacturers will need to change their strategies for the future of autonomous vehicles, app developers will need to think more carefully about serving this growing market and how they can create their apps for enhancing driving experience.

Everything from navigation apps to entertainment tools will need to be designed with the new car tech, connectivity, and requirements of the drivers in mind.

3. Security Continues to Be a Pressing Issue

Security concerns are one of the biggest factors for any business or manufacturer investing in autonomous vehicles. There are two types of security that businesses will need to consider.
  •  The first type addresses the safety of the vehicle occupants, where artificial intelligence takes the wheel.
  • The second type addresses the problem of potential cyber attacks that could put tech-based drivers at risk.
The safety of autonomous cars will continue to be the thing that makes or breaks the future of autonomous driving. 

Self-driving vehicles simply won't be able to gain wider adoption until they can guarantee the security of passengers, as well as pedestrians.

Geolocation and advanced analytical tools are starting to offer helpful ways for autonomous cars to sense the environment around them, however there's still a great deal of work to be done. 

4. Extended Connectivity and Communication

To a certain extent, creating a safe autonomous car begins with connecting with the right developers and innovators during the vehicle supply chain.

Automotive connectivity is now one of the biggest technological pillars that self-driving cars are reliant on. Communication and connectivity are crucial to ensure that the roads are secure in the future.

Today's manufacturers need to think about how they can use AI in cars to make quicker, and more accurate decisions. For instance, this might involve investment in: 
  • Vehicle to Vehicle (V2V) communication: Helping cars interact with each other on the roads, therefore improving safety, speeding up travel times, and helping to predict traffic situations. General Motors introduced this concept for the first time in 2017, and it has continued to be developed since then.
  • Vehicle to Infrastructure (V2I) communication: Using 5G networks and IoT, vehicle to infrastructure communication allows connected vehicles to exchange data with the surroundings, which could help to coordinate traffic speeds with road locations and maximize fuel economy.
Enhanced systems for communication between vehicles and infrastructure will create better environments for driving and keep drivers and pedestrians safe on the roads.

5. The Rise of Blockchain

For many manufacturers with technology in their infrastructure, blockchain has become a crucial buzzword. Valuable for the management of data and the control of the supply chain, blockchain can transform the way that we think about autonomous cars.

In the future, experts predict that blockchain will make a significant difference to the safety issues of driverless cars, by making it easier to aggregate large amounts of data from vehicle owners that fleet managers and manufacturers can use.

With security at the core, blockchain also protects the system under the hood of the modern autonomous vehicle, preventing tampering, malfunctions, and attacks.

The ability to analyze data via blockchain will be a huge boon going forward. At the same time, the use of blockchain promotes smart contracts, which is another growing trend for autonomous vehicles.

Smart contracts help to regulate financial, logistic, and legislative communication in the vehicle manufacturing world. The contracts on the blockchain could even allow autonomous cars to send requests straight to suppliers for new parts and solutions.

Blockchain-based smart cars could autonomously pay for parking and tolls on behalf of drivers.

What's Next for Autonomous Driving?

The automotive industry is continuing to evolve at a record pace, providing that self-driving cars won't be relegated to sci-fi stories forever.

Companies around the world are beginning to invest in more of the tools and solutions that could make autonomous driving a reality for the masses.

Starting with intelligent cars, we'll see the rise of a new way of driving in the months to come.

Heather Redding is a technology writer for Daxima, enterprise software development company. She loves to geek out writing about apps, wearables, IoT and other hot tech trends. When she finds the time to detach from her keyboard, she enjoys her Kindle library and a hot coffee. Her Twitter is @heatheraredding.