Leveraging the supply chain for growth | KPMG | IL

Global Manufacturing Outlook: Leveraging the supply chain for growth

Leveraging the supply chain for growth

With manufacturers focused on entering new markets and creating new products, ensuring the supply chain is ready for growth will be a top priority. However, manufacturers will first need to focus on improving their supply chain visibility and flexibility if they hope to reduce the risk of partnering with new suppliers and creating new value chains.

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Low visibility, high risk

With much now riding on their supply chain’s ability to meet new demands and growth expectations, many are increasingly worried about an unexpected supply chain failure. In fact, when asked what posed the greatest risk to their growth agenda, supply chain failure ranked third, behind only economic disruption and market disruption (two factors that, arguably, are outside of their direct control).

“The best way to reduce the risk of supply chain failure is by achieving greater visibility, and managing it cross-functionally deeper into the end-to-end supply chain. The fact that so few manufacturers can claim complete visibility suggests that much more will need to be done, particularly for those with ambitions of expanding into new international markets and adjacent segments where supply chains may be untested.”

 - Erich L. Gampenrieder, Global Head of Operations Advisory with KPMG International 

Setting priorities for growth

Our survey suggests that manufacturers are taking fundamental steps to enable operational improvements across their supply chain through supply chain analytics, understanding cost-to-serve and creating alignment to corporate strategy. They are also investing into new and improved technologies in order to enhance the performance of their supply chain operations.

“IoT is going to be a critical component of growth for manufacturers, both as a way to improve the value of their products by embedding sensors and connectivity, but also as a way to monitor, manage and improve the supply chain.”

 - Erich L. Gampenrieder, Global Head of Operations Advisory with KPMG International 

2016 Global Manufacturing Outlook links

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