Global Metals Outlook 2015: Rethinking the supply chain

Metals 2015: Supply chain

Supply chain cost management continues to sit high on the metals sector agenda as organizations start to reconsider whether their cost structures are driving or dampening competitiveness.

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An engineer at the conveyor belt

According to the Global Metals Outlook 2015, metals organizations hope to wring cost savings and competitive advantage from their supply chains. Supplier performance and capability will be key going forward, yet few metals organizations seem to have the required visibility across their supply chain networks to drive improvements.

Concerned about the competitiveness of their supply chain, metals organizations are sharpening their focus on costs and restructuring to support growth.

  • 49 percent expect to reduce supply chain costs and working capital levels
  • 32 percent believe they lack a competitive supply chain cost structure
  • 30 percent say that the flexibility and responsiveness of their supply chain is creating challenges 

Supplier performance and supplier capacity rank as top challenges for metals supply chain organizations, yet supplier visibility remains low. 

  • 38 percent are concerned about supplier performance
  • 36 percent are worried about supplier risk
  • 83 percent admit they don’t have complete visibtiy across their supply chain. 

“Metals organizations are increasingly focused on becoming more competitive through new product launches and better demand-planning. But be warned: the reality is that growth and new product launches tend to turn supply chains into increasingly complex operations and that can often become a drag on agility and competitiveness.”

- Erich L. Gampenrieder, Head of KPMG’s Global Supply Chain Center of Excellence

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